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    1. krisbritt is offline

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      #1

      Need help on Tax for India based Ecommerce Business

      Hi

      I am from India, I want to start an online business. I have a very difficult question for me and I am trying to solve this but still I have not had success in getting the answer to this question. Here is the basic model of my business:

      1) I am based in India and I will make my office in India.
      2) I will sell electronics items in European countries like Sweden, Italy, France, Germany etc online.
      3) I will start a few websites selling mobiles phones, laptops etc.
      4) I will accept the orders on my site and then I will forward that order to my supplier, which is in Hong Kong. He will ship the products with the Sales Invoice of their own company, my name will not be published in the Sales invoice.

      Do I need to pay the VAT or any kind of Tax to any country in this process?

      Please answer it. It's very important for me.

      Thanks
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    2. China Import is offline

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      #2
      1. If your company is based in India it will be subject to IT act which stipulates that all overseas earning to be subjected to indian income tax.
      2. Current forex rule in India requires that all sales proceed is first remitted to India and then remittance made separately. For example if your customers pay in via PayPal then all money will be first converted to INR and transferred to your bank account. You may remit funds separately either by PayPal or regular banking channels to your vendors.
      3. If you do not issue sales invoice then how will you demonstrate ownership to those invoices and money collected?
      4. HK does not have any VAT

      It is better you consult some IT lawyer to help you sort out tax related issues.
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    3. krisbritt is offline

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      #3
      Hi,

      Can Moderator help me out in this regard? Ok i change the language of my question a bit.

      1) I am based in India and I will make my office in India.
      2) I will sell electronics items Globally now, indeed most of the countries like US, Canada, EU countries, Asian Countries, Australia etc
      3) I will start a few websites selling mobiles phones, laptops etc.
      4) I will accept the orders on my site and then I will forward that order to my supplier, which is in Hong Kong. He will ship the products to the customers.

      Now I want to ask do I need to pay VAT or custom duty etc. I am totally new in this business. I have got the idea about the drop shipping business but I am not getting any good legal and tax relating advice. Please moderator help me to work out on this.

      Thanks

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