Vat on e-commerce

Others 451 views 3 replies

Akhil

MBA

24 Points Joined August 2015

Hi there

I have the following question for the following subject,

a. Regarding VAT and CST (mutli state )

b. Regarding Entry Tax

Following are the sitution

a. Delear is registered in one state say Uttar Pradesh

b. Dealer Buy a goods form another state say punjab (one unit of shirt), he (dealer) is not regiested there nethier its his residing in that state

c. Dealer sold these goods to a end consumer say Mr Gupta residing in andhra pradesh who buy this goods for there personal usage and not for reselling ,he (dealer) is not regiested there nethier its his residing in that state

My Question are

1. How VAT and CST will charged,, if goods are not entering in UP but ownership of goods remain with the delear situated in UP throught out the trasit , goods are pay on delivery nature buyer will have to pay only when goods arrived at there door step, if buyer refuse to pay on delivery, goods get returened to the buyer situtaed in UP,then what will happen

2. Say instead of andhra pradesh goods are sold to west bengal ( Non resisdent, ungreistered dealer), now state have charged us entry tax at the rate of 1% which is paid by Carrier now will this one percent absolve us from any sort of tax laibity (i.e VAT or CST) or we have further pay any sort of VAT or CST

3. Can my supplier pay VAT on my behalf?

Replies (3)

B.N.Dharmendra

Senior Manager Indirect Taxation

136 Points Joined August 2010

There is not difference between e-commerce and regular Sales. You are a registered dealer in UP(Consignee) and buy from Punjab(Consignor)he is a unregistered dealer.

1.you are not suppose to buy from a unregistered dealer, if you buy you have to pay the tax to local sales tax dept. with penalty. You can sell to unregistered customer who is a end user but being a regitered dealer buy from registered dealer only, you can get tax concession like issue of Form-C.

2. If Purchasing from Registered dealer it is a interstate sale and tax rate on the commodity is as per UP VAT ACT and you are selling it to Andhra (unregistered dealer) ie. In transport document put delivery to X at Andhra. You ie. UP is going to pay for the commodity to Punjab and Andhra is going to pay you(UP) if he accepts, UP raise a Invoice with UP Tax and send it to Andhra (by mail). If Andhra dont accept the commodity it is returned to you by the transporter since UP is the owner of the goods. When the goods are returned to you, you cannot claim any Input Tax Credit setoff against any other sales by you because its an interstate transaction .(Pl. check in Punjab - Normally ITC are not eligble for Interestate purchase).

B.N.Dharmendra

Senior Manager Indirect Taxation

136 Points Joined August 2010

The interstate purchase is taxed as per Punjab Tax rate, its not as per UP State as i mentioned (Tax charged based on Origin of Goods).

Supplier cannot pay the tax on your behalf. Sales Tax is State oriented.

VIMAL

ASSISTANT MANAGER FINANCE

58 Points Joined March 2009

What is the position for Prepaid and COD Shipments which are send to State of Kerla? Is there any monitory limit? Is there any compliance requirement apart from circular No.15/15 issued by Kerla vat Authorities?