Applicability of vat/service tax to e-commerce websites ?

arun rs (arcticle) (52 Points)

07 May 2017  

Please look in to the situation..

 

A private company wants to start an e-commerce business. They actually don't sell THEIR OWN GOODS. The company DOESNOT directly purchase anything or sell anything.There is an option for registering buyers and sellers in the website. Sellers register their account with their VAT/CST reg number and billing is done with these reg nos. The website will be charging some commission/service charge from such sellers on value of goods they sold.  The receipts and  payment may sometimes be routed through the companies bank account.

 

My question is what are the taxes applicable to the company other than Income-tax;

Service tax alone ?

Service tax and VAT ?

VAT alone ?