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: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: form 3cd :: cpt :: TDS :: ACCOUNTING STANDARD :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit
 
 
Direct Tax »
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal

Tax dept to step up focus on B2B deals
July, 26th 2008
The income-tax department, which is trying to find new avenues to deduct tax at source to boost direct government revenues, is examining online business transactions very carefully this year, especially in the so-called business-to-business, or B2B, market.
Currently, tax deducted at source (TDS) being collected through online transactions is negligible, said a finance ministry official who did not want to be named. According to a 2006 estimate by eStats India Ltd, an Internet research and consultancy firm, the Indian online B2B market is likely to touch Rs13,550 crore by next year.
The same official said the decision to take a closer look at online business transactions was taken at a conference of senior officials of the income-tax department in Bangalore in mid-July.
TDS is the fastest growing segment of direct taxes, the main sources of government revenues. TDS occurs when a payer deducts taxes before the money reaches the payee. One of the most common forms of TDS happens when employers deduct taxes from salaries. TDS requires relatively little ongoing effort on the part of tax authorities.
TDS is the best way to collect taxes and also the most cost-effective way, notes Gaurav Taneja, partner at Ernst and Young.
Online business transactions can be loosely split into two categories: B2C, one where retail transactions take place, and B2B, where there is potential for TDS collections.
TDS has become a focus area for the income-tax department recently. A few years back, the department allocated people to deal exclusively with it. Soon after, growth in TDS collections began to outstrip that of the three other sources of direct tax: advance tax, regular assessment and self-assessment.
In 2007-08, TDS collections grew by 51% to more than Rs1.06 trillion from a year ago, contributing to about 34% of the overall direct tax collections of Rs 3.14 trillion.
To keep the growth momentum in TDS intact, it is necessary to look at new avenues, said the finance ministry official who also participated in the Bangalore conference.
While the growth rate of offline transactions indicate tax potential, both tax officials and independent experts said TDS of online transactions would be challenging as business models are often different compared with traditional ways of transacting.
We need to know how a transaction is done, the ministry official said adding, that needed to be followed by a refined and non-intrusive way of collecting taxes.
Looking at a transactions sequence and the way it works are important. Internet is something where there are numerous business models, Taneja noted.
One challenge tax authorities are likely to face soon is that an increasing number of online transactions would see even payments being made online unlike the current situation where in a majority of cases, the deal is struck online but payment made through traditional modes such as cheques. The tax department is trained to deal with a paper trail and would need to look at alternate methods for the Web.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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