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Tax on ecommerce transactions

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This query is : Resolved

shidrika (Querist)
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10 October 2011 Hi,

Our company is interested in starting an Ecommerce website and I request someone to kindly give me some information regarding taxation.

We will be buying products from a wholesaler and then sell the products through our website. i.e the customer will be paying for the product with his card. In this scenario, what sort of tax will be levied on the transaction.

Also, if we provide a cash on delivery service: where the customer pays for the product to the courier company, where and what tax is levied.

Please help.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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10 October 2011 For sale of products in the state VAT wouldbe payable and for those sold inter state CST would be applicable. Invoice raised by you in the state where you are located wouldget the revenue. The courier is only anagent to deliver/ collect the proceeds.

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