The E-commerce sector caught in the double tax net!
The e-commerce sector got involved in the tax net in the proposed budget for the financial year 2021-2022. This is because the proposed budget proposes to integrate the e-commerce platform as a source tax authority.
As a result, when selling any product/service online, tax has to be collected from the consumer. This will increase the cost of online shopping at the consumer level.
However, if you want to know the immediate response from e-cab in this regard, the general secretary of e-cab has expressed the fear that it is going to fall into a double tax trap as a result.
He said the absence of a standard operating procedure or SOP has arisen this complication. Simply put, e-commerce merchants sell services, not products. They pay taxes to the government on that service. If the system of taxing them on the goods bought now is introduced, this sector will stumble in the development by keeping the economy and business trade active in the Covid-19 scenario.
