Ecommerce

This query is : Resolved

Guest

Guest (Querist)

01 November 2011 Dear Sir/Madam,
This is Ram,MD of a software firm in chennai. We are in the process of developing an e-commerce site for 'online menu ordering' mainly for hotels and restaurant industry in India .I have a question regarding VAT/service tax(Since I'm not still clear with these terms,I am unable to put my question in the right category).Take for example, if you are using my e-commerce site and paying Rs.100 to these hotels, then you will pay them only through my account.I want to take my commission of Rs.15 from this and transfer the balance Rs.85 to the hotels.In this case, what would be the tax to be paid by me?Is it VAT/service tax?how much? Is it for Rs.15 (my commission) or for Rs.100? Somebody pls help:(

Guest

Guest (Querist)

09 November 2011 Dear Sir/Madam,
This is Ram,MD of a software firm in chennai. We are in the process of developing an e-commerce site for 'online menu ordering' mainly for hotels and restaurant industry in India .I have a question regarding VAT/service tax(Since I'm not still clear with these terms,I am unable to put my question in the right category).Take for example, if you are using my e-commerce site and paying 100 to these hotels, then you will pay them only through my account.I want to take my commission of 15 from this and transfer the balance 85 to the hotels.In this case, what would be the tax to be paid by me?Is it VAT/service tax?how much? Is it for 15 (my commission) or for 100? Somebody pls help:(