E-commerce

Others 824 views 8 replies

I am entering into an E-Commerce business and having few querries regarding it. Please help..

1.)As we will be focussing on international clients, so will there be any kind of duty attached to it or any formalities to be fulfilled. We will be selling all the goods outside India by saying it as samples, so the remittance of same can create any problems.??

2.)In the beginning we will we will take cataloques of other companies and will upload their products on our websites. So please suggest me in this case that we will be charging rent from those companies for giving them space on our website or we will just treat it as normal sale and purchase from those companies whose products are uploaded in our website or we will be treated as an intermediary and will receive the commision  on sale.

3.)We will be selling unstitched suits and sarees on which VAT/CST is not attracted. Supose if we get an order to get the blouse stitched  as per the measurement, so will it attract VAT/CST or it will attract Service Tax on the same or both will not be attarcted.

4.)The product which we will be purchasing will not have a label on it  or if it has we will replace the same with ours. So, will excise attrtact to us in this case.

Thanks..

Replies (8)

your business method is not still clear, you are going to start a portal like ebay? or want to act as a dealer?

ill b dealing in ladieswear only..  ill b the dealer as well as will be uploadin catalogues of difrnt companies  dealing in ladieswear..

then its hiring of portal only, and to some extent commision agent, noting else, service tax applicable, and the person who will upload his cataloge, will transport the goods direct to the client, and you will pay him after geting payment, and deducting your portion.  your role is more like a bank, and you wil hve to pay service tax on your commission, balance all benefits of tax will go to the vendor who will sell the goods actually to overseas buyer.

Thanks for this point.. can u also help me out 4 other points askd abve pls..

as an e commerce portal you are entitled to advertise their goods only, manufacture and sell is total on the party, you can pass on the orders to them for stick etc, but if you add these then it will get complicated.

Thanx sir..  wat abt point 1 and 3. can u pls guide me wid dem also..

i told you already that you are not the vendor, you are just advertising them and on successful sale you will get commission, so the taxes and duties are part of the vendor, coz he will sell the goods to the buyer just the payment will get routed through you. so the taxes and duties are his part, not yours.

In the beginnin there are three companies of whose catalogues v will b uploadin and all those three companies are our group companies only so dats y askin abt d legal formalities as wel..


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