Taxation for sale through ecommerce website

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2014 Dear Experts,

I have a query relating to ECommerce sales and a very specific scenario.

I am a resident of India,I have joined a web program which provides the platform for E Commerce selling.I do few sales through it.

Now, The products which I sell is not owned by me,neither I have any physical store or warehouse.Once I receive the order from the products I listed in the Commerce website, I simply buy the order from another seller(based in China) and get it shipped to the the person who has originally ordered through the Commerce website(with the profit added, off course).

In turn, the Ecommerce website, charges me 15% of the total sales value.

Now my question is,
1) what will be my tax liability in this case.
2) Under which category of income it will be?

If there is any detailed guidance or information,kindly share.It will be helpful to me for my knowledge gaining.

Thanks

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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03 November 2014 Here,some details can be given regarding VAT only. As it is an import trade you have mentioned custom duty is also leviable.Such consignments will be intercepted by Customs authorities and detained till import duties are paid.You should link up with clearing agents for this work.
However,now,the transaction which you mentioned in the query will be a sale-in-the-course-of import.This sale is exempt from CST/VAT on giving direct delivery to the customers.If you receive it,after custom clearance,keep it in a godown and then dispatch to buyers on sale VAT/CST will be chargeable.In any case for doing e-commerce VAT/CST registration is necessary.For getting exemption as a sale-in-the-course-of import prior order from customers and direct dispath to them is essential.After getting custom clearance,you may replace the import invoic e with your own.....mjk