Hello
I could not find much information on CST on this forum, hence raising a separate question.
I want your expert comments on the following case :
- A Person is registered dealer in Haryana and is selling goods(furniture category) through e-commerce portals like Amazon, e-bay, snapdeal etc.
- He receives orders through these portals and he ships the same using their shipping partners like Fedex, dtdc etc.
- The e-commerce portals charge shipping fee+service charges and commission +service tax. They deduct these charges from the selling fee and make payment of net amount to this person.
- The turnover is less than 5 lacs per annum. He registered under HVAT act only since it is mandatory to provide TIN number in most of the e-commerce portals.
- His sales are both in Haryana and outside Harayana.(but he sells only online and that too through the e-commerce portals)
My questions are :
1. Since his turnover is less than 10 lacs, he should not pay VAT. Is my understanding correct?
2. Since the sales are inter-state mostly, hence he may have to pay CST. At what percentage should he pay CST considering that he is not selling to registered dealers, but to end users
3. Can the CST be calculated on the Net amount that he has received from the e-commerce portal after deducting their charges, instead of the selling price on the listing?
4. Since his sales turnover is very low, can he claim any exemption from filing returns or depositing VAT/CST?
5. Can he claim credit of Service Tax paid to e-commerce portals and for shipping, against CST?
Thanks for your help in advance.
CAclubindia
