Legal Question in Business Law in India

hi, vat and sales tax is different in each state. i fix the price for a product and sell it through my online website. but in that state no vat. now how.


Asked on 2/02/15, 4:45 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

02.02.2015

Dear Sir / Madam,

In India, VAT replaced sales tax on 1 April 2005. Of the 28 Indian states, eight did not introduce VAT namely Gujarat, Rajasthan, Madhya Pradesh, Chattisgarh, Jharkhand, Tamil Nadu, Uttar Pradesh and Uttaranchal. Due to the federal nature of the Indian constitution, the states do have the power to set their own VAT rate.

In my opinion, you are required to levy VAT based on the rate of VAT adopted in the State in which the registered address of your website is located.

Regards,

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Answered on 2/02/15, 6:02 am


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