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Online selling...

setty (others) (33 Points)

03 October 2013

Hi All,

I want to start an online shop,where i sell products like homeware,Gifts, etc...

Do i need to have VAT regestered??

When i buy prodcuts from the shop they charge VAT,do i need cahrge VAT for the customers who buy online also??

Note: the business turnover is less than 5Lakhs/year

Please do help me..

Thanks

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2 Replies

MJ Krishnamurthy (ACCT(Retd)) (7197 Points)
Replied 04 October 2013

Mr Setty,

You have not mentioned the state in which you are operating.However,in many states like Karnataka vat wiil be levied on the sales of dealers who are liable to be registered i.e.whose sale exceeds Rs5 lakhs.This condition applies to those who are making all purchases locally from regsitered dealers and also sell locally. If you make any interstate purchases or sales this limit does not apply.From Re1 / you have to register.Under any VAT Act how this on-line sale is treated is not known. If it is treated as a casual trader then also a registration is required immediately When you have take up regn you have to collect tax on all sales deduct input tax and pay the balance......mjk

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