Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT Audit :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES
 
 
VAT (Value Added Tax) »
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods
 Petrol prices set to rise in Goa with increase in VAT
 Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon a
 Shops cannot charge VAT on discounted items: Consumer forum
 Delhiites have to pay lowest taxes as AAP govt announces cuts on VAT on various items
 Tamil Nadu minister justifies VAT hike on fuel
 State Government urged to withdraw hike in VAT on petrol, diese
 High VAT may encourage illegal trading

VAT Issues: Karnataka offers ecommerce giant Amazon a month for tax call
October, 13th 2014

Karnataka has offered the Seattle-based ecommerce giant Amazon one month's time to explore and come up with options by which they could comply with the state VAT laws.

Until then, the Commercial Taxes department has agreed not to act against individual dealers who have business partnership with Amazon. The development has come as a breather to both Amazon, and dealers, and it is still too early to say whether a mutually acceptable solution is possible soon.

"We are trying to arrive at a common ground, and have told Amazon to suggest options. We have also told them that we cannot allow the present uncertainty to linger for long," ISN Prasad, principal secretary, finance department, Karnataka, told ET. "Once a solution is found, we can propose necessary changes in the VAT law or in the rules keeping the specific needs of the ecommerce businesses in mind," he added.

In response to an ET query, Amazon said: "We are awaiting a resolution and will extend full cooperation to the government to arrive at a solution."

Amazon, which opened its modern warehouse in Hoskote taluk of Bangalore Rural district in January, could partner with barely 50 dealers/merchants as its "fulfillment model" ran afoul with Karnataka tax authorities. Under this model, the dealers register the Amazon warehouse as their additional place of business (APOB), also called branch, with VAT authorities. The Commercial Taxes department accepted this initially, but later questioned the business model. The local VAT offices (LVOs) soon issued notices asking dealers why their branch certificates be not cancelled.

"The Commissioner of Commercial Taxes has verbally asked local VAT offices not to cancel the certificates immediately, and instead offer one more month's time to dealers to give their replies," an official said.

A person tracking the developments confirmed that the VAT authorities have not issued any further notices or cancelled branch certificates.

The American behemoth with $74.5 billion in global revenues last year has conveyed to the Finance department that it is unable to issue VAT invoice to buyers or remit taxes on dealers' behalf as any such activity would be construed as engaging in retail trade, and violate FDI regulations in India. It cannot register itself as "commission agent" with the tax authorities for the same reason, it said. The Finance department, however, has lobbed the issue onto Amazon's court to explore solutions.

The affected dealers, meanwhile, are unhappy at the stalemate, and some have already moved their stock from the warehouse though they continue selling on Amazon. Others have stopped selling online altogether because of the problem.

of the additional services like warehousing and packaging offered by Amazon," said a dealer, whose branch certificate has been cancelled.

The Bangalore-based dealer, whose firm has an annual turnover of under Rs. 5 crore, was expecting online to account for almost 40 per cent of his revenue this fiscal. "If the problem continues Amazon can move its warehouse to Tamil Nadu or some other state. Then merchants will suffer and Karnataka will not get these taxes anyway," he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions