Selling through ebay usa, what is tax implications in india
This query is : Resolved
17 March 2013
My Friend is selling in usa through ebay usa. He is taking orders from ebay site. He sends his own invoice to customer in USA. He is selling bedsheet.
He is getting payments in INR through paypal in his bank account. During the year there is receipt of Rs 25 lakh in his account.
He has arranged a company here in India, this company purchase material and delivers in USA.
On confirmation of delivery of goods, ebay release his payment. On receipt of payment , he release payment to procurer. In whole exercise he earns around Rs 150 per sale.
Total sale is Around Rs 25 lakh, net profit on such sales is around Rs 1.25 lakh only.
Question is:
1) Should he get him self registered in Sales Tax?
2) Will these transaction be termed as commission sales or own sales?
3) How should he account for in his IT return, . Should it be shown as commission income of just rs 1.25 lakh or sales of Rs 25 lakh and reduced by expenses of 23.75 lakhs?
Please share your thoughts on this?
He is getting payments in INR through paypal in his bank account. During the year there is receipt of Rs 25 lakh in his account.
He has arranged a company here in India, this company purchase material and delivers in USA.
On confirmation of delivery of goods, ebay release his payment. On receipt of payment , he release payment to procurer. In whole exercise he earns around Rs 150 per sale.
Total sale is Around Rs 25 lakh, net profit on such sales is around Rs 1.25 lakh only.
Question is:
1) Should he get him self registered in Sales Tax?
2) Will these transaction be termed as commission sales or own sales?
3) How should he account for in his IT return, . Should it be shown as commission income of just rs 1.25 lakh or sales of Rs 25 lakh and reduced by expenses of 23.75 lakhs?
Please share your thoughts on this?
17 March 2013
do he has right to purchase material from anywhere instead of present supplying company, if yes than its purely business and he needs to get registered in VAT/CST and should file ITR for business. If no then he is just an agent to supplying company and only have to file ITR with commission income.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR selection for salaries and capital gain less than L
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR returnFY25-26
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
