Invoicing Querries

This query is : Resolved

Kartik (Querist)
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28 June 2010 Introduction

We are an electronic intermediary facilitating exchange of Commodities/goods. We have our own website wherein the buyers and sellers quote their respective prices. The goods are in the ownership & possession of the seller. Whenever the prices quoted by the buyers and sellers match, trades happen and subsequently we transfer the Money from the Buyer to the seller and the Goods from the seller to the buyer.

Next, the seller raises an invoice on the buyer along with the applicable VAT as most of the goods are liable to VAT

Query

We do not want the buyer and the seller revealed to each other. Hence, we plan to ask the seller to raise the invoice in our name and subsequently we shall raise a bill on the buyer.

Query No 1: I assume that the seller will charge Vat in his invoice to me. Am i correct?

Query No 2: Do we need to charge VAT to the buyer? If so, will we have to get registered in all the states from where the goods are being sold or do I need to get registered only in the state from where I operate? I,e: the sellers will be located in different states but I have a centralized billing system of operating from Maharashtra only.

Query no 3: Is it possible for me to step into the shoes of a commission agent and bill the buyer on behalf of the seller and simply pass on the invoice amt to the buyer ? in this case can I use the VAT no of the seller and pass him the sale proceeds inclusive of Tax or I need a separate VAT registration?

Query no 4: Can there be some other amicable solution wherein I need not avail VAT registration?

Please help.

my emailid is kartikbaba@rediffmail.com

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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28 June 2010 1.yes
2 yes, you need to register yourself in all the state where you want to trade. you have to charge vat/cst in your invoice from the buyer. it isnot correct to have centralized billing as vat is a state subject.
3. you need to have separate vat registration.
4. you may get registration in maharashtra and appoint consignment agents in all other states. transfer the goods on F form basis.

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