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Community Member
Posts: 3
Registered: ‎21-12-2009

Requirement of Form50 (VAT) for online purchased good for personal use


Due to recent changes in state tax collection (VAT) of West Bengal, Many sellers are refusing to sell/send item to west bengal.

Common response form sellers :

"On 26-Feb-2010 at 14:33:44 IST, seller added the following information:
I do not ship to West Bengal. Buyers from West Bengal, Please do not buy this item. Incase you send payment it will be refunded minus refund cost, if any. Why I do not ship to West Bengal? Buyers from West Bengal have to provide a Form 50 which has to obtained from the Sales Tax dept. and send it to the seller. This form has to be attached to the goods while sending them to West Bengal. No buyer till date has sent the from and goods are seized by sales tax and seller have to pay penalties / loose the goods. Till laws in West Bengal are changed, I will not be able to ship any product to West Bengal. Octroi if applicable in your city will have to be paid by the BUYER. Couier may also levy service charge on Octroi Payment. Octroi is levied in certain cities of Maharashtra, Thane etc. & Not in pooper Mumbai as seller is also based in Mumbai. It is the duty of the buyer to ascertain the rate of Octroi and other formalities relating to Octroi in their cities.

For eg. : http://cgi.ebay.in/ws/eBayISAPI.dll?ViewItem&item=300438463837


As a buyer, my question to you is,
1) What we can do to avoid the problem ?

2) Can you make necessary changes to your system so that VAT can be directly calculated (based on buyers current location and their state wise VAT %) and paid by Ebay on behalf of seller ?

Due to these problems many buyers from West Bengal are slowly switching from Ebay to other means.

This problem will slowly grip many other states in India due to subsequent state wide implementation of VAT rules as directed by Govt of India. X-(
(Reference : http://india.gov.in/citizen/salestax.php and http://www.worldjute.com/wj_vat.html )

Please take necessary corrective action as soon as possible.

Thanking you,
An Upset Ebay buyer from West Bengal.
(Many to follow)
Community Member
Posts: 1,586
Registered: ‎11-12-2006

Requirement of Form50 (VAT) for online purchased good for personal use

in reply to thandermax

What the seller has mentioned about form 50 and VAT are two separate things, please do not mix the two.

The seller has not refused to send because of VAT issues, he has refused to send because of Form 50 required by Govt. of West Bengal.

The problem is same across all online portals, not only ebay.

Unless West Bengal Govt. changes its policy nothing much can be done.
Raj Electroniks.
Community Member
Posts: 3
Registered: ‎21-12-2009

Requirement of Form50 (VAT) for online purchased good for personal use

in reply to thandermax
Thanks for your reply , really appreciated.

But ...
VAT is generally charged by seller and is properly recorded in cashmemo.

Seller sends the accumulated VAT for a given period at a single go, like filling annual Income Tax return.

But the problem with ebay is most of them is not actually a Dealer/ seller. Even if I send Form50 most of them will be unable to fill it properly as most of them don't have any TRADE LICENCE which is required.

Also you have to list yourself as a register VAT payer of WB govt. There is a web portal also (http://wbcomtax.nic.in ).

And you have to list your VAT submission status with Form 52 also.

Have a look at the actual form :


I know few of the big seller with registered shop will be able to do that, but many will fail.

It's is slowly becoming a Ebay transaction system deficiency . Unless they correct it as early as possible, most of the sale will be blocked as VAT will be implemented in ALL states in India sooner or later.

If it is not corrected before it manifests in it's full form, whole EBay ecosystem may fall.
Community Member
Posts: 448
Registered: ‎23-08-2009

Requirement of Form50 (VAT) for online purchased good for personal use

in reply to thandermax
@ thandermax

As correctly mentioned by rajelectronic VAT and Form 50 are separate things. Also if you are selling something to a buyer in WB, its not compulsory to register yourself to WB government as u stated. VAT can be paid anywhere. but for getting in the product inside a state there are some regulations and taxes.
For eg- Octroi in Nagpur.

But I see that you are still linking them together.

VAT receipt/bill has to accompany the FORM 50.
Also as you said about VAT registration status of sellers, there are some guidelines regarding it which are available for reference in different state Gazzetes.

Most of eBay sellers have a low turn over which does not falls under Compulsory Vat registration. wherin big seller with offline shop as well are having registrations done. (Also registration has to be done within 6 months of starting business/crossing threshold, but it is mandatory to maintain record of all sales which in eBay's case is done by the eBay server as the files which are available for download's to sellers)

So to sum up the it's not the issue of VAT for shipping to WB, but Form 50 which has to be filled by buyer's and dispatched to seller to be accompanied with the parcel.

There is little eBay or seller's can do about it.
Community Member
Posts: 1
Registered: ‎11-12-2010

Requirement of Form50 (VAT) for online purchased good for personal use

in reply to thandermax
But if a buyer is purchasing for his own use and not for sale... Can the seller declare that the item is for personal use not for re-sale?