(Solved):How does taxation in an E-commerce site work? Which tax should I pay, CST or local sales tax?…

 

Question

How does taxation in an E-commerce site work?

Which tax should I pay, CST or local sales tax?

Should I pay the tax or the seller or the buyer and what percentage?

Which tax is applicable?

 

EXPERT ANSWER

In E-commerce sites, the entrepreneurs will pay the amount to the suppliers for the transaction of goods on their platforms, with this payment the suppliers collect 1% of the total amount as tax and they deposit it

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