entertainmentupdates

Amazon, Flipkart, Microsoft to pay 2% extra tax now

Source : IANS 2021-02-02 20:29:35


The Confederation of All India Traders (CAIT) has welcomed the Budget proposal to impose 2 per cent extra tax on foreign e-commerce companies whether engaged in business of sale of goods or providing services, acceptance of offer for sale, placing of purchase order, acceptance of purchase order, payment of consideration or supply of goods and services partly or wholly.

As per a statement, it has also been clarified in the Budget that the tax will be applicable for consideration of sale of goods, irrespective of whether the provider owns the portal, and consideration of provisions of services irrespective of whether services are provided or facilitated by e-commerce operators.

The provision has been made in the Budget by proposing amendments to Section 163 sub clause (3), Section 164 clause (cb), Section 165 sub section (3) and clause (b) of The Finance Act, 2016.

The provision will be applicable retrospectively with effect from April 1, 2020. All such foreign companies which are engaged in sale of goods or providing services through any online mode will come under the purview of this provision and will have to pay 2 per cent extra w.e.f. from April 1, 2020.