Introduction -
I want to start an e-commerse store. my prroposal is to sell products from different sellers and vendors on my online store, where i will manage their inventory ( the products that they want to sell on my site ) as in - their daily stock and new additions, product pictures, products descripttion etc. i will give them sales report related to their products daily. in return i will charge an amount of rupees as a monthly mentainance charge, and on every product sales i will charge a small amount of commission.
Here is what my business is all about -
I make monthly agreement with a retailer / vendor / wholeseller / or any one who want to sell their products online. in return i take an amount say Rs. 1000 from them to mentain their items on my online store. I do every thing from product pictures, Descripttion and advertising.
When an item is sold, my system automatically charges a specific percentage of amount on the cost of the product sold, say 5%.
When the customer pays the amount through my online payment channel and the amount goes into my current account.
Every dealer gets his payments cleared every 15 days, say two times a month.
Main Confusion -
I am confused regarding tax payment and account mentainance. I am from IT background so i am technecally sound in softwares rather than tax and all.
When i am earning only the mentainance charges and commissions through my business what kind of tax do i need to pay. also when all the products total cost comes to my account and i pay the dealer their respected product amount after deducting my commission, how do i show this in my income tax, as the number of transactions in my bank account may be large. also - what registration certificates do i need like - cst , st, tin etc.
I am determined to run this business, i have bought the required domains and my website is currently in testing stage, i have dealers who want to join hands with me, please Suggest your ideas so i can get on the right track.
Rishi Rai
CAclubindia
