VAT & CST help/suggestion required.

[nshadab]

Hello Friends,

We are setting up a dropship biz for ebay sellers. We have come across with some odd picture...plz put some light on that if you can, would be highly appreciated.

We offer the warehouse to ebay sellers.
We provide the product images and description.
eBay seller list and sell it.
place the order with us for the that item.
we ship that to customer location.

Item cost to eBay Seller : 500 INR
eBay Seller sold it for : 1200 INR

Now the questions are,
When we ship the item to customer, do we have to stick the invoice with shipment?
and what should be invoiced amount?
the amount we charge from eBay Seller (500 INR); or customer (1200 INR)?

But we also dont want customer to know, for how much we have sold to eBay seller.

And also if we invoiced it for 1200 INR, we have to pay VAT/CST on 1200 INR, which is actually not received by us, we have just sold it to Store Owner on a Wholesale Price.

plz help if there's any way out, because we know this is unique business in india, and we want to start this up asap, sothat all eBay Sellers may avail this service, without investing any capital in stocking goods or warehouse. They also dont have to care about labels, shipping, etc. Just a hassle free eBay Business.

[ajayraj2009]

Hello mate,
as far as i know of the eBay regulations,you should not hold the item after paisapay confirm payment from a buyer.ebay doesn't bother whether you are wholesale or retail.Their policy to according to the shipment regulations.
The only thing you can do it sell the item to an ebay retailer just like an ordinary one listing for a definite number of pieces.
eg:- put 100 pieces of X items for Rs.1000/-
The other options are rounding about and it will be of trust and might be out of ebay protection coverage which the buyer will only do after they attain a substantial trust in yours dealings.

i am not an ebay employee

[onesimpleman_in1]

This is a dropship business . We have done it in the past.
The best way to do is to ask your seller to forward an invoice every time a sales happens.You pick the item according to his invoice and post it with a copy of his invoice.

You can generate a separate invoice using your accounting software for your seller where you specify wholesale rates. The customer do not have to see this.
Message me if you have any doubts about implementing this.