My Client is online retailer, who sells almost everything from electronics, apparaels, footwear, furniture, Mobiles etc. through online website only.
Query: 1. What is the process of charging MVAT on Online Sales ? Should we charge on every invoice or any special provision available for online retailers of a Single Rate ? 2. He imports all his goods and then sells online retail mode. While all purchases are without any proper bills/ Tax invoice etc. so can he opt for Retailer Composition Scheme or not ? Are there any turnover caps for Retailer Composition Scheme ? pl specify
Your early reply in the matter would be highly appreciated.
10 August 2014
Composition Amount (Tax payable) The composition amount shall be, calculated on the, Excess, if any, of the total turnover of sales, including turnover of sales of tax - free goods but excluding liquor, Drugs, and Motor Spirits referred above, in respect of any six monthly period over the turnover of purchases including turnover of purchases of tax free goods, but excluding liquor, Drugs, Motor Spirits referred to in column (3) of this entry , in respect of the said six month period. The turnover of purchases shall be increased by the amount of tax collected by the vendor of the retailer separately from the retailer. The Tax payable on amount so calculated above is 1) at the rate of 5 per cent for the retailers whose aggregate of the turnover of sales of goods, covered by schedule A and goods taxable at the rate of 5 %, if any, is more than 50 per cent. of the total turnover of sales; excluding the turnovers of liquor, drugs and motor spirits referred to columns 3 of this entry 2) at the rate of 8 per cent. in any other case.
10 August 2014
Composition Amount (Tax payable) The composition amount shall be, calculated on the, Excess, if any, of the total turnover of sales, including turnover of sales of tax - free goods but excluding liquor, Drugs, and Motor Spirits referred above, in respect of any six monthly period over the turnover of purchases including turnover of purchases of tax free goods, but excluding liquor, Drugs, Motor Spirits referred to in column (3) of this entry , in respect of the said six month period. The turnover of purchases shall be increased by the amount of tax collected by the vendor of the retailer separately from the retailer. The Tax payable on amount so calculated above is 1) at the rate of 5 per cent for the retailers whose aggregate of the turnover of sales of goods, covered by schedule A and goods taxable at the rate of 5 %, if any, is more than 50 per cent. of the total turnover of sales; excluding the turnovers of liquor, drugs and motor spirits referred to columns 3 of this entry 2) at the rate of 8 per cent. in any other case.
CAclubindia
