Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT RATES :: TDS :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: cpt :: empanelment
 
 
General »
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months
 Here’s how self-employed should efile their taxes
 Advance tax given by individuals in June quarter rises more than 40%

Telangana government moving fast to tax e-commerce companies
November, 16th 2015

In a move that could change the IT industry-friendly image of Telangana, the state government is planning to impose a tax on e-commerce companies, including Flipkart and Amazon.

While the proposal is likely to stir up a controversy, the government seems determined. "We are working on a policy framework to monitor all kinds of online transactions, including those of the e-commerce companies. The proposal is to set up a common server and to see to it that no one is out of the tax purview," commerce minister Talasani Srinivas Yadav said.

The minister complained of loopholes in the existing tax policy, courtesy which many traders and big companies are getting away without paying sales taxes. He said an amendment to the Value Added Tax (VAT) Act was required so that the tax base might be widened.

"As far as e-commerce is concerned, our government's policy is to encourage industries based on technology. However, there must be a proper monitoring system for regulation while ensuring revenues to the exchequer," said Srinivas Yadav, adding, "We have a meeting next week where the policy proposals would be discussed."

Sources in the commercial department said the state government was keen on the models being worked out in states such as Karnataka, Kerala and Maharashtra -- where governments are proposing to impose one per cent of tax on payments by buyers to sellers on e-commerce sites."We are waiting for a report from the commercial tax department which is working on the proposed tax regulation for the e-commerce industry. Based on the report, we will decide on the policy framework," said IT principal secretary Jayesh Ranjan.

The move, however, has dismayed the IT industry as the e-commerce companies chose to set up their largest fulfilment centers in Telangana owing to the government's industry-friendly stance. Both Flipkart and Amazon moved their fulfilment centers (warehouses) from Bengaluru to Hyderabad after the Karnataka government proposed to levy one per cent tax on an e-commerce transaction in the form of VAT (which is to be deducted at source).

"I think it would be a regressive step if the Telangana government decides to tax e-commerce firms. When e-commerce companies are looking at Telangana as an investment destination, the state must be competitive in terms of industry-friendly policies as compared to the other states," said Sandeep Kumar Makthala, global president of Telangana Information Technology Association. When contacted by TOI, the Flipkart spokesperson declined to comment on the issue.

The Telangana government, however, is firming up its stand and the officials said the policy formulation was on fast-track. "The e-commerce firms had agreed that they would cooperate with the state policy before they came here with their business proposals. They had committed to pay tax," said Jayesh Ranjan. "However, we have assured them that everything regarding the tax policy will be done in a consultative manner."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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