Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: cpt :: ACCOUNTING STANDARDS :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: VAT Audit :: TDS :: list of goods taxed at 4% :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Direct Tax »
 RBI releases draft directions on hedging of commodity price
 Unexplained deposits in focus, taxmen ordered to go all out in the next three months
 Why India’s corporate tax rate should be cut
 Best ways to save tax under section 80C
 Govt may exceed direct tax collection target of FY18 Budget estimates
 CBDT relaxes MAT provisions for companies under corporate insolvency
 CBDT relaxes norms for MAT on firms facing insolvency
  Income-tax deduction from salaries during the financial year 2017-18 under section 192 of the Income-tax Act, 1961
 CBDT to appeal for revival of certain deregistered companies
 How the new tax regime fared in India these last 6 months
 Income Tax Slab for AY 2017-18: Know your tax category

Government should make tax compliance easy for e-commerce operators
September, 19th 2014

The Karnataka government has erred in asking online retailer Amazon to pay value added tax (VAT) on products it does not own or sell.

The company is just a service provider, a service it calls 'fulfilment' on its marketplace platform for which it charges the merchant. The merchant, in turn, pays VAT collected from the customer to the state government.

Amazon, if at all, is liable only to pay service tax, and for this, the Centre should deem 'Fulfilment by Amazon' as a taxable service. The current tax row though is independent of the enforcement directorate's probe to find out if Amazon has violated India's foreign direct investment laws.

Online retail is expanding fast in India. The case to bring it into the tax net is compelling. It will help prevent tax-base erosion profit shifting. Not unexpectedly, the OECD, a club of rich countries, sees the digital economy as a revenue gold mine, and urges countries to impose VAT.

In the US, for example, online retailers already pay sales tax in many states that have adopted state online laws, also called Amazon tax laws. There is no reason why India should be an outlier.

True, state tax laws in India predated online retail and, therefore, e-commerce transactions do not find specific mention in these laws. That must change. It makes eminent sense to tax e-commerce deals because India wants to adopt a goods and services tax (GST). Without a tax on e-commerce sales, the GST chain would be broken.

A tax on their sales is the only way e-retailers can get credit for the taxes they pay on their inputs. Else, doing business in India will not be lucrative. The main job is for the government to create procedures that make tax compliance easy for e-commerce operators, and tax all value additions along the chain.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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