Accounting Query - Sale Price for Product sold on E-Commerce Website

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  1. HARSHAL GOHIL

    HARSHAL GOHIL New Member

    Hi
    I would like to post my query in form of a example
    Q. Mr. A registered in the state of Maharashtra for VAT purpose (MVAT). He sells his product say for Rs 10,000/- via amazon . Now Mr A receives Rs 650/- in his bank account from Amazon say after 15 days of the sale. The calculation is as follow

    1. Sale Price - Rs 1,000/- (visible on the website for the product)
    2. Commission charges by Amazon - 15 % i.e Rs 150/- (i.e. 15% on Rs 1,000/-)
    3. Delivery Charges - Rs 200/- (Decide by Amazon on the basis of Weight & Size)
    4. Net Amount Received by seller Mr A - (1,000 Less 150 Less 200) = 650/-

    Here Amazon just acts as a platform where buyer & seller meet. The order paced by the buyer is forwarded to the seller. The sale consideration is received by Amazon on behalf of Mr. A and the same is remitted after deducting Commission & Delivery Charges.

    My query is
    1. What will be the sale value for Mr. A - Rs 1,000/- Or Rs 650/-
     
    Last edited: Sep 7, 2016
  2. rudrabose

    rudrabose Active Member

    The Sale Price in this case is Rs. 1000

    Moreover, the Invoice would also be raised in the name of the buyer for Rs. 1,000

    Rs. 350 would be treated as expenses.
     
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