Hello Experts,
I am an independent professional - self employed in Maharashtra, India. I want to know the tax implications on resale of fine art paintings through internet.
To state my query in short - I want to sell paintings (fine art) through my website.
For this, I have two options in mind. Option 1: Buy fine art paintings from painters - Indian as well as Global - and then resell them through a website.
Option 2: Don't buy the art paintings but just display them on my website and if a sale occurs, obtain the art painting from the painter, deliver it to the end customer, collect the price from the end customer, retain my commission and handover the balance money to the painter.
What would be the tax related matters I must be aware of in either case mentioned above? Will it be treated as a service (my buying from the painters and selling to end customers) or as trading? And therefore what will be applicable - service tax or sales tax (or vat)? And at what rate?
Thanks, experts, in anticipation of your help.
Regards.
CAclubindia
