About Tax and legal procedures
4 weeks ago
I wanted to make an Online marketplace website for Buyers and sellers. Sellers upload their products on my website and buyers buy from them on my platform. I get commission. I will run this business at home. Do i need Gst registration and if I need register under what category and how can i register? Do i need trade certificate? Do i need to collect TCS from the vendors? What are the legal things that i have to prepare and make ready to run this business online. Please guide me
A.Dear Client,
The Legal Requirements for your Online marketplace website for Buyers and sellers are as follows :
1. Every business is required to get registered with the Ministry of Corporate Affairs under the applicable law which should be incorporated under the (Indian) Companies Act, 2013.
2. GST registration for every E-commerce business is mandatory to get registered under the Central Goods & Service Tax (CGST) Act.
REQUIRED DOCUMENTS FOR GST REGISTRATION FOR E-COMMERCE
• PAN Card of the Proprietor or Company's director.
• Article of association/Memorandum of Association
• PAN Card and Aadhar Card of the Authorised signatory
• TCS Detail
• Ministry of Corporate Affairs issues Certificate of Incorporation
• PAN CARD of the Company
Certain steps that need to be followed to get GST Registration by E-Commerce are mentioned below.
Step 1- The taxpayer has to Log in first, then complete Part A of Form GST REG 01. Fill out the form with your name, your company's name, your mobile number, and your email address. after confirmation of above mentioned then TRN number is generated
Step 2- After that Part B of Form GST REG 01 is filled in which the companies permitted signatories and banks are entered. Then the ARN No. is produced.
Step 3- Upload the required documents in the required format i.e. Bank statements, Aadhar cards, PAN cards, and other paperwork need to be uploaded.
Step 4 - The form and documents are verified by the officer. During verification, officers can reject or accept the form. If he is not satisfied then the officer can ask for an explanation. Applicants have 3-4 days to provide the proof of justification.
Step 5- After acceptance of the form in GST REG 06 GSTIN , then the GST Certificate is issued
3. A payment gateway is mandatory for this E-commerce website to process the payment as it will facilitate the website to accept payments through credit card(s), debit card(s), net banking, and internet banking from multiple banks for which one payment gateway is sufficient to accept various forms of online payments and upon receiving the payment from the customer by the website, such payment is sent to that respective business’s bank account through the payment gateway for smooth transactions.
4. It is necessary to maintain and draft the terms and conditions, disclaimer, and privacy policy as per the business upon the products sold and purchased online.
5. The compliance of the e-commerce business has to be with the statutes enacted i.e. Information Technologies Act, 2000, Payment and Settlements Systems Act, 2007, and Consumer Protection Act, 2019 has to abide as well as Government and RBI guidelines in regulating such business.
6. TCS applies only when the operators collect payment from customers on behalf of vendors or suppliers. In other words, when e-commerce operators pay the consideration collected to the vendors, they must deduct TCS and pay the net amount.
Hope, it helps you.
Thank you
The Legal Requirements for your Online marketplace website for Buyers and sellers are as follows :
1. Every business is required to get registered with the Ministry of Corporate Affairs under the applicable law which should be incorporated under the (Indian) Companies Act, 2013.
2. GST registration for every E-commerce business is mandatory to get registered under the Central Goods & Service Tax (CGST) Act.
REQUIRED DOCUMENTS FOR GST REGISTRATION FOR E-COMMERCE
• PAN Card of the Proprietor or Company's director.
• Article of association/Memorandum of Association
• PAN Card and Aadhar Card of the Authorised signatory
• TCS Detail
• Ministry of Corporate Affairs issues Certificate of Incorporation
• PAN CARD of the Company
Certain steps that need to be followed to get GST Registration by E-Commerce are mentioned below.
Step 1- The taxpayer has to Log in first, then complete Part A of Form GST REG 01. Fill out the form with your name, your company's name, your mobile number, and your email address. after confirmation of above mentioned then TRN number is generated
Step 2- After that Part B of Form GST REG 01 is filled in which the companies permitted signatories and banks are entered. Then the ARN No. is produced.
Step 3- Upload the required documents in the required format i.e. Bank statements, Aadhar cards, PAN cards, and other paperwork need to be uploaded.
Step 4 - The form and documents are verified by the officer. During verification, officers can reject or accept the form. If he is not satisfied then the officer can ask for an explanation. Applicants have 3-4 days to provide the proof of justification.
Step 5- After acceptance of the form in GST REG 06 GSTIN , then the GST Certificate is issued
3. A payment gateway is mandatory for this E-commerce website to process the payment as it will facilitate the website to accept payments through credit card(s), debit card(s), net banking, and internet banking from multiple banks for which one payment gateway is sufficient to accept various forms of online payments and upon receiving the payment from the customer by the website, such payment is sent to that respective business’s bank account through the payment gateway for smooth transactions.
4. It is necessary to maintain and draft the terms and conditions, disclaimer, and privacy policy as per the business upon the products sold and purchased online.
5. The compliance of the e-commerce business has to be with the statutes enacted i.e. Information Technologies Act, 2000, Payment and Settlements Systems Act, 2007, and Consumer Protection Act, 2019 has to abide as well as Government and RBI guidelines in regulating such business.
6. TCS applies only when the operators collect payment from customers on behalf of vendors or suppliers. In other words, when e-commerce operators pay the consideration collected to the vendors, they must deduct TCS and pay the net amount.
Hope, it helps you.
Thank you
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