new Delhi. The Confederation of All India Traders has welcomed the Union Budget proposal to impose an additional 2 per cent tax on foreign e-commerce companies, through which it is engaged in the business of selling goods or providing services or technical services. If accepting the offer, or acceptance of the purchase order or the payment of part or all of the supply of goods and services is made by e-foreign commerce companies, then now these e-commerce companies get 2 percent additional tax. have to give.
Will have to pay tax
According to CAT, it has also been clarified in the budget proposal that this provision will also apply to the sale of goods, even if the provider is the owner of the e-commerce portal. Apart from this, it will also apply to the provisions of services through e-commerce, even if the service provider itself is an e-commerce operator.
These companies will have to pay tax
This provision has been made in the budget by proposing amendments to section 163 sub clause (3) of the Finance Act, 2016, section 164 clause (cb), section 165 sub clause (3) and clause (b). These provisions will come into force from the previous date of April 1, 2020. Not only Amazon and Flipkart, but also Google, Microsoft, Zoom and other such foreign companies, which are engaged in selling goods or providing services through any online medium, will come under this provision and they will be effective from April 1, 2020. 2% additional tax will have to be paid. This is a big and bold move of the government, which has been welcomed by traders across the country.
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CAT’s National General Secretary Praveen Khandelwal lauded the move saying that, “The proposal expands the definition of ‘online sale of goods’ and ‘online provision of services’, all confusions about e-commerce will be cleared and these will be in India.” Will redefine e-commerce. ” He said, “We welcome this provision. Amazon, Walmart etc. have toyed with the laws of the country, including large scale violations of FEMA and FDI policy, we hope that the proposed provision is strictly Compliance will occur and lobby organizations like the USBC will be prevented from interfering in India’s internal affairs.