VAT Provisions on Online Shopping

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Manish Kapoor (Querist)
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28 May 2010 Dear All:

Please let me know what provisions of VAT/CST will be applicable on the company selling goods online in India.

Your immdediate response will be highly appreciated.

Regards,

Manish Kapoor

gautam kumar vaish

gautam kumar vaish (Expert)
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28 May 2010 obviously there would not be any vat/ cst on online purchase as because there is no billing system generated in the online billing system. secondly most of the purchase under online is from the individual side, in that case the liability if vat or cst is inclusive and is to be pay by the seller, not the purchaser.

CA Kamal Gangaramani

CA Kamal Gangaramani (Expert)
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21 June 2010 Mr. Gautam, the question is regarding
sale by company selling goods online

There will be no difference between online sale and regular sale.

If goods are delivered in state, state sales tax will apply,

If goods are sold out of state, the CST will apply,

If goods are exported, custom laws will apply

The question is also regarding sale of goods and not regarding sale of software.

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