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Mandar (Owner)     30 December 2013

Am i liable to pay service tax/vat ?

I'm application developer from India & I don't have much knowledge of India tax law. I'm looking forward to create an application/ service simillar to ebay, amazon where sellers will directly sell items to buyer across India through my application which is kind of open marketplace for individuals (Individual sellers as well as buyer)


Sellers wlil upload their products to my site & ship their product to buyer directly. So, I won't be holding any goods nor I will be having any warehouse.

I'll only charge certain commission if seller made any sell & I'll transfer their profit on monthly basis through their preferred way of transaction.

So Am I liable to pay service tax/VAT ? OR should sellers themeselves are liable to pay these tax ? How ebay/amazon etc marketplaces tax module works in India ?

Any guidance will certainly help me.

Regards



Learning

 1 Replies

Akshay Jain (Partner)     31 December 2013

Hi Mandar,

Since you will not be a seller and will work like an agent (the same model Flipkart/E-bay is running), you are not liable to VAT. The only liablility would be that of Service Tax as you will be one who will be providing service.

To read full details please read the article below:

https://www.ngoandtaxconsultant.in/2013/12/how-to-start-e-commerce-business.html


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