Home / Knowledge / News / Apparel/Garments / Govt likely to clarify tax norms for e-commerce companies
Govt likely to clarify tax norms for e-commerce companies
09
Nov '15
Taxation for e-commerce companies operating in India has been a grey area fro some time. The government is now preparing to issue a clarification to end the confusion over e-commerce companies that operate marketplaces, so that states do not impose taxes on them, a leading business newspaper has reported.

The newspaper quoted a senior government official as saying that e-commerce players such as Flipkart, Amazon India and Snapdeal should not face the same taxes as brick and mortar retailers. The official said that only the buyer and the seller have to be taxed and not an e-commerce company which only provides a platform for the transaction.

The official said the Department of Industrial Policy and Promotion (DIPP) has received inputs on framing e-commerce guidelines from nearly all states and is drafting a policy to define the marketplace model in an unambiguous manner.

The government's hand seems to have been forced after Karnataka proposed tax deducted at source (TDS) of 1 per cent as a value added levy on payments made to sellers by ecommerce companies. There is a worry that similar moves by the states could distort the tax structure, increase compliance costs and derail the rapidly growing industry. E-commerce companies that have an inventory-based model may not be able to take advantage of the marketplace definition.

The Confederation of All India Traders (CAIT) had recently lodged a complaint with the DIPP against e-commerce players alleging that e-commerce portals are circumventing the law and are engaging in B2C activities, which is prohibited for e-commerce marketplace portals.

The DIPP forwarded the complaint to the Reserve Bank of India (RBI) and the Enforcement Directorate (ED), requesting them to examine CAIT's complaint and take necessary action, CAIT had claimed. (SH)

 

Fibre2Fashion News Desk – India


Must ReadView All

Egypt’s textile exports increase 3% in 10 months: TEC

Textiles | On 21st Nov 2017

Egypt’s textile exports increase 3% in 10 months: TEC

Exports by Egypt’s Textile Export Council (TEC) between January and...

UKFT turns sector skills body for UK fashion, textile sector

Textiles | On 21st Nov 2017

UKFT turns sector skills body for UK fashion, textile sector

The UK Fashion & Textile Association (UKFT) recently announced at a...

Pakistan’s textile exports up 7.72% in July-Oct ’17

Textiles | On 21st Nov 2017

Pakistan’s textile exports up 7.72% in July-Oct ’17

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search