tax/vat calculation for online shopping

Hi All,

Not sure which Group this query should addesse to so a am posting it here.I am planning to start an online e-coomerce shopping portal to sell products online which will also includes some FMCG products

I am not sure how the tax/VAt is being calculated for products being sold online.

e.g if I register my company in delhi and i have an order to be delieved in Noida (UP) so how will the calculation of tax/VAT will be done and how it will be processed.

Any pointer in this regard as where to start and any resource will be much helpful.

Thanks in advance for your valuable inputs



From your example, It is an interstate sale from Delhi to Noida (UP) liable to pay CST @ 2% against C form or at the rate of tax applicable under appropriate state in the absence of  C form. Thanks.


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