Hey guys,
I have a startup and recently started selling on EBAY India.
I have two questions in regards to that, would be glad if someone can solve my query. My doubt is in relation with VAT and TDS rules applicable on Ebay India and me as a seller who's selling on their dashboard.
I'll explain that with an example. Say,
Item price is = Rs 1000
Say Vat = 5%
then listing price becomes 1050
Now ebay would be deducting it's commission say 10% on the listing price that's inclusive of VAT which is say Rs 105 but it should have been deducting it's commission on (listing price - Vat amount)
Which means I'm paying Rs 5 extra to ebay, How is that managable? Should we consider that it's taking Rs 5 extra as commission?
2nd doubt
As ebay is taking commissions on sale, what's the way to manage TDS? According to tax regulations person giving commission should be deducting TDS and it becomes his liability to pay TDS to the government, but because the remaining payment is what I'm receieving from ebay (They pay the remaining amount after deducting their expenses) i have no way to charge TDS to them. Can later i be held liable to pay TDS on their behalf? Or how would this go?
CAclubindia
