• TAX details for dropshipping ecommerce site

The website products are imported from China and Sold in INDIA and US we are just the frontend for the customers

1. For selling in INDIA , im getting the company registration(LLC) done in INDIA only and the GST , is it sufficient to run the business from INDIA ?
2. Is there any other tax to be paid for indian govt , please update
Asked 6 years ago in GST

Hi

LLC registration is not required. You can work as a sole proprietorship also.

Apart from GST, income tax shall apply as usual.

Import duties shall also be applicable. Make sure how import duty arrangements are made.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

I think that should be sufficient. You may not need the LLC.

In terms of taxes, it would be GST and your personal Income Tax which will be applicable.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

HI,

In India, to proceed with imports and trade, following are the steps and provisions to be taken care of:

1. Registration of Company under ROC- Apart from registration, annual filings shall also be due.

2. Direct Tax- Income tax shall be payable by the company annually on the income earned by the business.

3. Indirect Tax- GST registration and filings.

4. Import Export Code.

Thanks & Regards,

Damini

Damini Agarwal
CA, Bangalore
405 Answers
31 Consultations

5.0 on 5.0

1. No, it may not be sufficient as if you are having a setup in India you may need to get registered under Shop and Commercial Establishment Act of the concerned state. Further, if you are going to have more than 10 employees then PF & ESI Registration will be required.

2. You will need to pay Income Tax also on the profits earned.

Brijendra Tripathi
CA, Lucknow
143 Answers
3 Consultations

5.0 on 5.0

Apart from GST, income tax and co.registration, you need to obtain IEC for import. We may assist you in getting Import and Export code.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Since it is dropshipping model whereby you will never received the goods which shall be directly shipped by the China supplier, you do not require an IEC. Also, since it is an online buiness, you also don't require shop registration.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Under drop shipping, customer will place an order to you on your website and you then places an order with the supplier resulting into supply of the product by the supplier directly to the customer. Supplier will bill the invoice to you but goods will be shipped to the customer directly because customer had already paid you.

On the invoice, supplier will be China and bill will be raised against you and ship to the customer therefore you will be deemed as importer and required IEC.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Yes .further if you wish you can run business in capacity of sole properioter also.As registering as company will cost you more.

Apart from GST, income tax will also be payable on your income .

In case if physical movement of goods are involved ,then custom duties and procedure are to be taken care of.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Whether you are doing online or offline business, if the no. of employees employed by you exceeds more than 20, you are mandatory to obtain PF registration.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1031 Consultations

5.0 on 5.0

Hi,

You may incorporate a company for this purpose however it is not required. You can do the business under sole proprietorship set up as well.

Apart from GST, normal income tax have to be paid by you.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA