hello everybody - Indian tax and HQ questions

Discussion in 'Accounting and Taxes' started by aavik, Jun 17, 2013.

  1. aavik

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    New Member

    Jun 17, 2013
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    i live in mumbai,i want to start my Ecommerce website for selling mobiles.

    here is my doubts about sales tax

    1. vat is different for different states so, i guess mobile price is also different for different states.That means mobile price in mumbai is higher(because of higher vat, service tax,octroi ) than surat(gujrat's city)?

    2. if is it so that means i have to buy mobile(or any other product) from different states which have less sales tax and bring it to mumbai and then parcel it to customer .
    or i am thinking to open my warehouse in surat and dirctly parcel it to customer.

    3.where to make my company's headquarter (warehouse-godown).

    4.how much vat, service tax,octroi i need to pay on product which i purchase in different states and want to bring back it mumbai.
    hope anyone can help me
  2. TimeRider

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    Apr 6, 2008
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    Welcome aavik to BusinessAdviceForum (BAF)! Thanks for joinging us! :)

    I am not from India, But here in my country prices differ in electronic products like mobiles in every city.

    Anyways, It's good to make your headquarter or warehouse where things are costly because you can buy your products cheap from other states and bring them to your state and after paying the tax, you can sell it at a good price to the customers. You can build your warehouse in Surat If you are exporting to other states.

    I don't think it makes sense that you buy product from same state and sell it in the same state because the profit will be generally low If you aren't exporting to other states.

    I think you can talk to a local Mobile shop about the tax / vat / octroi they pay for the mobiles. You will be more clear about that or I think some members here from India can help you specifically.
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