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
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

'Requirement of polyester filament yarn is increasing'

Textiles | On 19th Jun 2018

'Requirement of polyester filament yarn is increasing'

The requirement of polyester filament yarn (PFY) is increasing as it...

Courtesy: SAC

Textiles | On 19th Jun 2018

SAC to release pilot of Higg Facility Social Labour Module

The Sustainable Apparel Coalition (SAC) will release this year a...

Courtesy: Ebay

Apparel/Garments | On 19th Jun 2018

eBay partners with Noon for e-commerce sales in Middle East

Noon, the $1 billion e-commerce venture backed by Dubai businessman...

Interviews View All

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Claudia Kersten
Global Organic Textile Standard

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

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

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

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search