Vipul Kumar (Entrepreneur) (21 Points)
26 August 2021Should an e-Commerce operator working on Dropshipping modelcalculate this commission on the Base Price of a product or on Base Price + GST?
For example, if the Base Price of a product supplied by the vendor is 1000, GST is 18% then should the e-Commerce Operator apply his commission of 25% on 1000 or 1180? Thanks in advance.
CA. Heet Shah
(Tax Consultant & Practitioner)
(6180 Points)
Replied 26 August 2021
These would depend on billing model
CA. Heet Shah
(Tax Consultant & Practitioner)
(6180 Points)
Replied 26 August 2021
Usually one should calculate Commission on 1000 usually
CA Altamush Zafar
(GST Consultant)
(15976 Points)
Replied 27 August 2021
It depends on the contract.
Normally it happens on the base price.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
