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Vat

ayushi (Student CA IPC / IPCC) (33 Points)

01 December 2015

Why flipkart not liable to pay vat. ???

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8 Replies

Vikas Gupta (Tax Executive) (530 Points)
Replied 02 December 2015

Because VAT is payable if the seller sales some goods. Flipkart is not a seller. It only meets seller to buyer. The seller who sales his goods charges VAT on his bill. Flipkart is only a mediator/commission agent. He may be charged for service tax only and not sales tax/VAT. If you have ever bought something from Flipkart, you may see that when goods is received to you, a bill is enclosed where name & address of the seller is mentioned who has sold his goods to you. Notice the bill. He charges VAT (if applicable) on the described value of goods.

ayushi (Student CA IPC / IPCC) (33 Points)
Replied 19 December 2015

Thx vikas but commission receivd by flipkart would b taxable ryt ???

ayushi (Student CA IPC / IPCC) (33 Points)
Replied 19 December 2015

Thx vikas but commission receivd by flipkart would b taxable ryt ???

ayushi (Student CA IPC / IPCC) (33 Points)
Replied 19 December 2015

Thx vikas but commission receivd by flipkart would b taxable ryt ???

Vikas Gupta (Tax Executive) (530 Points)
Replied 21 December 2015

Yeah! Commission recd by Flipkart is its income and is taxable under income tax act within prescribed limit.

ayushi (Student CA IPC / IPCC) (33 Points)
Replied 16 May 2016

retailers cant charge vat????only wholeseller?????why so??

ayushi (Student CA IPC / IPCC) (33 Points)
Replied 16 May 2016

can you advice me how to study SM AND IT

Vikas Gupta (Tax Executive) (530 Points)
Replied 17 May 2016

If turnover of retailers/whole seller is more than the prescribed limit, VAT is charged. Perhaps you are talking about petty traders who sales daily domestic items such as milk, bread, shampoo, soap etc. They may not collect VAT from their customers only because of lesser turnover of sales as prescribed by state commercial tax department.