Trading by E-commerce does not attract ST - no loss to Indirect Tax revenue
TO a query whether there is any proposal to bring e-commerce operations under the Consumer Protection Law in view of complaints of cheating and other malpractices by such companies, the Minister of State for Food and Consumer Affairs, Raosaheb Patil Danve in a reply to the Lok Sabha said - E-commerce operations are already covered under the Consumer Protection Act, 1986. To further strengthen this law, the government is planning to introduce amendments to the Consumer Protection Act (CPA) 1986 in the ongoing winter session of Parliament, he added.
The Minister further said - Trading of goods by e-commerce does not attract levy of service tax. Goods which are imported/manufactured are cleared on payment of duty of customs/central excise, as the case may be, at the time of import/clearance from the factory. Therefore, as far as the Central Government is concerned, there is no loss to indirect tax revenue due to expansion of e-commerce.
Today, we carry an interesting article titled E-Tailing business - VAT and Service Tax Analysis. See our ST se GST tak column.