30 June, 2015

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Quarterly Returns Prescribed for Persons engaged in E-commerce under Delhi VAT

Quarterly Returns Prescribed for E-commerce Companies w.e.f 1st April, 2015
 By CA Ankit Gulgulia (Jain)

In a very interesting (Potentially a back-door taxing) and compliance burdening notification issued by Government of Delhi, the returns have been prescribed Quarterly  returns for E-commerce portals (not dealers selling on such portal) as under to share details of :-
    a)    Dealers located in Delhi
                  1.    Supplying the Goods to customers in Delhi
                  2.    Supply the goods to customers outside Delhi
   b)   Dealers located outside Delhi
                 1.    Supplying goods to customers of Delhi

Update (30.12.2015) :- No Compliance is required if One Sells his Own Products only on his Website.

Such E-commerce person (Co. / Firm / LLP / Proprietorship) etc  may be acting as facilitators, directing the  transaction  to  the dealer concerned  for supplying  the goods  to  the customer who has ordered for such supply or supplying the goods directly to the customers from the godown maintained,  managed  and  owned  by  such  facilitating  entities,  where  the  goods  of concerned  dealer  have  already  been  stored.

Highlights of the Return shall be as under:-
  • 10th of following month every Quarter beginning with Quarter ended 30thJune,2015 who’s current due date shall be 10th July, 2015 
  • Basic Profile in EC-1 is to be filed. Quarterly return of EC-II & EC-III is to be filed. 
  • Net  sale  turnover  of  a  dealer shall be turnover as  reduced  there  from  the  turnover  of  the  sold  goods returned which have been sold during the same quarter 
  • The  return  of  a  quarter  can  be  revised  by  the  end  of  next  quarter  for  making corrections for the goods sold in that quarter but returned in subsequent quarter. 
  • Suppression of information relating to any dealer engaged in supplying goods directly or indirectly through the portal of e-commerce entity would also be treated as violation of  the provision of Delhi Value Added Tax Act, 2004  / Central Sales Tax Act, 1956. Such turnover would be deemed as sale made by the e-commerce entity.

Author’s Note:- The same will be a check on Dealers engaged in selling goods via Online Web Marketplace. Further, where the turnover is not so disclosed by e-commerce company, interestingly that turnover will be deemed as sale by such E-commerce company only.

Source :- Notification No.F.3(515)/Policy/VAT/2015/330-41 dated 26th June,2015

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