• What taxes would I pay as a subscription box startup?

Preferably registered as a Pvt limited company. What tax could be levied on the consumer per box/subscription of multiple boxes and at what rate? Thank you in advance.
Asked 4 months ago in Corporate Tax from Mumbai, Maharashtra

Dear Sir,

 

Hope you are doing well !!

 

I assume your query is related to GST.

 

Please clarify if it is about GST.

Payal Chhajed
CA, Mumbai
3165 Answers
41 Consultations

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- On companies, income tax rate is 25% if the turnover of the previous year does not exceeds Rs.250 cr.

- other tax applicable is GST. For rate, check CBIC website.

Vivek Kumar Arora
CA, Delhi
3162 Answers
162 Consultations

5.0 on 5.0

You need to pay GST and income tax.

 

Income tax is to be paid by company @25% if their turnover in 17-18 is 400 crore for FY 2019-20 but since you are starting a new company your tax rate would be 30%.

 

GST rate would depend on type of good and that needs to be check at CBIC website. Also TCS would be collected by such e commerce website from you and you can claim it in GST.

 

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
2216 Answers
19 Consultations

5.0 on 5.0

Apart from corporate tax, GST would be charged on the products.

 

GST rate needs to be check at CBIC website.

Payal Chhajed
CA, Mumbai
3165 Answers
41 Consultations

5.0 on 5.0

Hi

 

The GST rate shall have to be checked in context with the type of product.

Further, it's a subscription box, you have 2 options:

 

1. Mention each item separately in the invoice and individual GST rates shall apply.

2. Mention it as a box and apply 1 GST rate.

Lakshita Bhandari
CA, Mumbai
3794 Answers
189 Consultations

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In Option 2 above, it has to be determined whether the supply is a composite supply or a mixed supply.

In composite supply, the rate of principal item is applied.

In mixed supply, the max rate of all the products is applied.

Lakshita Bhandari
CA, Mumbai
3794 Answers
189 Consultations

5.0 on 5.0

Hello,

 

GST would be levied on the customer for either per box/subscription of multiple boxes.

For GST rate applicable, check the CBIC portal.

I hope this answer satisfies your requirement.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1063 Answers
3 Consultations

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