For online selling (amazon) what is required cst or vat?

Others 2018 views 5 replies

Hello friends,
I’m sure I can get some satisfactory answer from this forum, let me explain my points. Currently we are selling some goods online via amazon since these goods are tax exempted so amazon didn’t ask any CST or VAT such as books. 
But now planning to sell some other goods such as Shoes, but here amazon asking CST & VAT details. It creating some puzzle or doubts because we are registered in other place and working in other place as –

1.    Our company is registered in Jharkhand.
2.    But we are operating from Delhi to dispatch item to amazon.
3.    Now Bata will provide shoes to us.
4.    Our total turnover is less than 5 laks only.

Now suggest us what is required CST or VAT? And from where we can get the same please.
Thanks
R. Kumar

Replies (5)
  • Doesnt matter where ur registered office is, take a place on rent and name it as a branch office, also take registration under vat and cst in delhi for that place.
  •  if u are trading in delhi only(i;e selling and buying both in delhi) then take vat but if either of the two or both selling and buying are outside state also, take CST (preferable to take both cst and vat registration). Make sure u do take care of C forms in sales as the buyers may hesitate to give c form who are unregistered.
  • doesnt matter if turnover is not exceeding threshold limit of registration, if company is asking for certificate it means they want to deal with registered dealers only.
  • u should consult an advocate dealing in vat and sales tax matters, also u can consult a CA who is dealing in these matters

Regards 

Thanks Yuvraj,

No doubt your suggestion is really beneficial, but here are my doubts or query. Since this company is registered under Jharkhand by my family (& family members are directors) and I’m leaving in Delhi in rented flat doing other jobs.
Since all company works required just purchasing & dispatching goods to amazon so we didn’t rented any place, all of works are being done with this rented flat where we are leaving. So my doubts are –
1.    Can we continue the same address to get VAT/CST?
2.    Since we deal with amazon and customer from all over India deal with amazon so VAT is required or CST here?
I contacted one of known CA he suggested that where your company is registered there you’ll have to register VAT/CST, is it ?

Regards
R. Kumar

 

There is no requirement of CST or VAT to sell on amazon or ebay. They pay this theirself. You don't need that. But some features are only for those who have registered for VAT or CST.

Thanks Piyush,

Even currently we are selling books only in amazon marketplace and they didn’t ask VAT/CST, so no issue in this. But when we are planning to sell Shoes they are asking VAT/CST for this, bit puzzled.

Along with we are in bit doubts if VAT/CST is required then for which part we should go either VAT or CST, please suggest since we’ll pick Shoes from Bata at this moment but later it would be different supplier also. But we’ll dispatch all goods to Amazon warehouse – Haryana only.

Your valuable input would be really appreciable.

Regards
R. Kumar

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