E commerce

This query is : Resolved

sahaj aggarwal (Querist)
Follow

25 May 2014 sir, in ecommerce now days, a person supplying to company like flipkart, snapdeal etc they charge commission on bill amount like e.g., a person supplying to these company sell a product to these company for Rs. 300 but company charge to customer say 450 on online portal , bill is for 450 but company has paid us 300 and 150 goes to company as commission on which tds is deducted. Now the question is bill is for 450 in our name sales tax is on 450 but we are getting only 300 so sales tax is on 450 which finishes margin, increasing sale price is not a solution as competition is there and company terms says sales tax is paid by us only. so please suggest a way out to help a person in most ethical way.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

25 May 2014 Dear Sahaj,

I am not sure if you are talking with actual numbers, but my personal experience has been that the commission margins are not that high. normally the commission is 7-10%. in such a scenario, the net result should normally not be negative unless costs are around 90-95%.

Rupesh Jain

Rupesh Jain (Expert)
Follow

26 May 2014 pls check with company. normally commission rate given by company. after considering local tax, legal tax, duties etc applicable on sale made by you. or legal tax will bear or reimbursement by company after the complete the sale transaction.

co give commission for your office exp. and other exp made by you for colleting order. not for your legal tax connect with sale transaction.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now