![]() ![]() Imagine the logistics of keeping on top of that even with a small product line - and then, what if you increase it? You need to keep track of inventory stored, en-route, damaged or being returned, in production or at customs, for example. ![]() Through a third-party like Amazon FBA (yep, you can use that even as an eBay seller). You could a) be selling through multiple channels, not just eBay, and/or b) be fulfilling orders You replenish your shelves and inventory as you go, but without one, you can’t have the other. ![]() If you own a physical store, you’ll have a stockroom with limited space. Oh, and states will back-charge you for any time you’ve spent non-compliant. If you’re new to ecommerce and/or to sales tax, having experienced help to navigate them is invaluable. Locations within states have varying rates some states have none at all eBay helps you in some areas and not others - and we haven’t even left the States yet. And that includes overseas, too.Įach US state has its own rules, regulations and rates, and the complexities don’t stop there. Sales tax has become a top priority - no matter where you sell. Wayfair decision in 2018 turned tax authorities onto ecommerce sellers, collecting and remitting Sales tax is a weird and not-so-wonderful beast.4 unique qualities of ecommerce accounting Sure the bins don’t need emptying, but a lot of other plates remain spinning in the air - particularly when it comes to ecommerce businesses.Īnd if you’re going to get professional help, it’s important that you seek out a specialist ecommerce accountant with the skills and expertise to steer you in the right direction.īecause ecommerce accounting is a little different. You can take away the physicality of a business and still be left with a lot of responsibilities. But if his books of accounts are audited u/s 44AB, then he will be liable to TDS if and only if he has booked commission in his books of accounts.Ready to rock your books? It’s showtime. 100 lacs), then the TDS liability will not be attracted regardless of whether he books commission or not. Mallela, I would like to inform you that if a trader is governed by provisions of Sec 44 AD of Income Tax Act, 1961 (in layman terms, it means the trader pays tax on the profit calculated 8% of the gross turnover upto Rs. Now as regards the issue of TDS liabitlity as raised by Mr. So it's better if you book in the name of 3rd party. If you account for each and every consumer, you'll end up in mis-management as to from whom payments are pending and you might not even recognize the names of numerous customers also. because ultimately they give you the payment and not the ultimate consumer. In my opinion, you should book the sales directly in the name of agent viz. I'm facing the same issue which currently you are. Hence we should show sales made to ebay & not to customer. This method of accounting also seems logical as the order is given by ebay to deliver the goods to particular customer & payment is also done by ebay. Hence is it OK to modify the accounting entries as follows :ġ) Raise bill in the name of Ebay & mention customer name/address as Consignee.Ģ) At the time of payment, Credit the payment to Ebay. Now since all the sales are to Retail customers, the number of Ledgers in tally has increased very much & it is becoming difficult to manage. ![]() When receiving payment from ebay we directly credit customer Account & difference in payment is debited to Ebay Service charges. Currently we are creating new customer Ledger & Debiting his Account while making Invoice. We are using Tally ERP 9 for our accounting work. 3rd Step : Ebay sends us payment after deducting commission & other fees. 2nd Step : We Invoice to customer & send the goods at his place. In this sale there are 3 parties involved.ġst Step : The customer places order to Ebay & makes payment to Ebay. We are dealing in Computer components & doing online selling via Ebay/Amazon/Snapdeal etc. ![]()
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