TN Government finds it tough to handle e-commerce companies
Posted on: 17/Jul/2015 6:08:12 PM
Feared of losing on commercial taxes, the Tamil Nadu government has shown interest towards reserving over the retail trading by e-commerce sites and companies.
According to the view of the government, most of the e-commerce companies have got just a virtual presence and they really find it difficult to figure out the transactions they carry out. Further, they also find it hard to track whether a transaction made to a customer is applicable for paying state value added tax (VAT) or central sales tax (CST).
As most of such e-commerce companies operate from overseas nations, there is a fear that FDI in retail is brought in through backdoor of such firms.
In a meeting held at the Centre in New Delhi, State commercial taxes minister M C Sampath took part and discussed the ways in which the guidelines for e-commerce can be streamlined.
Those companies that function from outside the jurisdiction of the state do not comply with the sales tax law, registration or filing of returns or responding to statutory notices, etc. Most of them failed to file tax returns which is insisted by the VAT laws.
