You will be required to service tax as well. And as regards direct taxes, income tax will be payable.
Dear Sir/Madam, We are going to start an e-commerce company in Chennai. We will sell the products of our vendors through our website and take a commission of 10-20% of the product value that has been sold. The VAT will be paid by our vendor. Apart from VAT , what are the taxes that need to be paid by us as an e-commerce company based in Chennai?
You will be required to service tax as well. And as regards direct taxes, income tax will be payable.
As you have income in the nature of commission , you need to pay service tax on ur service after claiming one time exemption of Rs 10,00,000..
Secondly, you need to pay income tax presuming you have ample profit..after claiming tds deducted by party
Thirdly you need to deduct tds and deposit the same timely and file the tds return too.
Fourthly. There many taxed related with payroll such as PF ,ESI and Welfare fund etc. U need to deduct and deposit the same.
Lastly.. If you are availing the services which are fall under the category of reverse charge mechanism, you need to pay service tax on the same..
Hope this will serve your purpose.
Let me know incase you need further assistance
If the goods are purchased and sold in your name, you will be a dealer and VAT will be payable by you. However, it seems that you are not the dealer and the bills are raised by your vendors through you. Hence VAT is not applicable to you and vendor will have to pay the VAT.
So far as you are concerned you will be liable to pay service tax on your services as business auxiliary services.
As per your version, if the commission goes above 10 Lakhs then you are liable to take service tax number and pay service tax. You need to collect the same from the vendors from whom you are receiving commission and pay the same and if the commission is inclusive of service tax then you need to calculate accordingly.
Apart from Service tax and Income tax in my view no other taxes are applicable to you.
From the above it seems that your arning are limited up to commission that you will charge with the vendor . Your services may be covered under the Business auxillary services and are chargeable to service tax . Apart from this you are liable for the income tax . However for the local tax you can enquire with local tax consultant .