Shall i pay taxes for dropshipping business?
Hi,
We are going to launch our LLP business for our drop shipping.
Here we act as a mediator between the customer and the wholesalers from china.
Please check below info about our business model.
Customer from other country such as USA, UK, Germany will place order on our site using PayPal. That amount will go to our PayPal account. Once the order is placed by customer than we will send that order request to one of the seller from China and we will pay the amount to that product to the wholesaler using our bank or PayPal account for payment.
For example customer from UK will place order for XYZ product for $25 on our site than we will place order for that XYZ product from the seller/wholesaler for $10.
Once the product is placed by us than that product will be shipped to the customer directly from china. Those sellers/wholesaler will not include any invoice in the customer shipments. But we can get that invoice from the sellers from our end for every transaction.
We will transfer PayPal amount to the bank account in India once in a month if we have profits.
In this cycle we are nowhere involved in the physical product sale from india. Everything happens online and products will be shipped from china to other country customers.
My question is...Shall we pay GST? or all these transactions comes under export category (ZERO rated supply).
What should we do if it is first case or if it is second case?
Thank you in advance.
Ajay.
In this cycle