How is sales tax and VAT calculated for ecommerce in India?

Discussion in 'Accounting and Taxes' started by aavik, Jun 21, 2013.

  1. aavik

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    Jun 17, 2013
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    What about sale via website to end user and physical delivery through courier in different state? What taxes are applicable?

    i have some knowledge about vat and sales tax...

    State VAT for sales made in the same state (buyer and seller are located in the same state). Central Sales Tax for sales made interstate (where buyer and seller are in different states). Other than these there is no tax payable on sale of goods.

    (Assume you registered your company in mumbai)

    Product in mumbai (in your inventory) sell in mumbai.
    Pay mumbai Vat :4.6%
    Product in delhi (in your inventory) sell in mumbai: Pay CST 4%
    Product in delhi (in your inventory) sell in delhi: Pay CST 4%

    anybody have some other knowledge about how much sales tax and VAT i have to pay on import and export of goods? :confused:
    #1 aavik, Jun 21, 2013
    Last edited: Jun 21, 2013
  2. Fergal

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    Nov 18, 2007
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    Welcome aavik, thanks for joining and posting your business questions on Business Advice Forum.

    I'm based in Ireland and unfortunately don't have a knowledge of Indian tax laws. What I would suggest is that you speak to an Accountant. Tax laws can be complex and you will get the best advice by dealing with a professional. In Ireland, lots of accountants will give their first consultation free of charge, perhaps it's the same in India?
  3. TimeRider

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    Apr 6, 2008
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    aavik Welcome to BAF! Unfortunately I am also not from India. But I hope you will find someone here from India to help as we have bunch of Indian members here.

    Firstly, What kind of company are you trying to establish? It is also good to ask someone from tax department or a local shop / company about the sales tax they pay. If you are starting a mobile shop, you could possible ask a local mobile shop as you tell them you are starting one.

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