Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
Tech
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
2-min read

E-commerce Players Seek Sops on Digital Transactions in Budget

Several challenges have surfaced in the area of taxation in the e-commerce space.

IANS

Updated:January 25, 2017, 4:10 PM IST
facebookTwittergoogleskypewhatsapp
E-commerce Players Seek Sops on Digital Transactions in Budget
The European Union plans to launch more antitrust investigations into e-commerce companies. (Representative image: Reuters)
Loading...
With the government's emphasis on a less-cash economy, stakeholders in the country's digital space have sought incentives in the upcoming Union Budget on February 1.

Don't miss: Vivo V5 Plus Review: Ups the Selfie Ante With Class

The incentives would help to promote e-commerce -- an essential component of non-monetary transactions, they said.

The e-commerce industry is one of the fastest-growing sectors in India, and the government's demonetisation move in November 2016 helped the entire sector as people adopted e-wallets and other payment options.

According to Amarjeet Singh, Partner, Tax, KPMG in India, the e-commerce industry was hoping that the government would incentivise digital transactions undertaken on these platforms.

"This could be in the form of rebate on service tax/GST (goods and services tax) levied on commission, rationalising or withholding tax on commission to improve cash flows," Singh told IANS.

"Similarly, on the direct tax front, the government should take steps like granting exemption to provisions of Section 79 for the industry, allow e-commerce companies to capitalise customer acquisition costs as market intangible, to give a booster to the industry," he added.

The e-commerce market in India has grown from $4.4 billion in 2010 to around $16 billion in 2015. It is expected to hit $76 billion by 2021.

"The Indian e-commerce industry would be looking for some positive outcomes both in terms of tax relaxation and more freedom of operation," said Harshvardhan Lunia, Co-founder and CEO, Lendingkart Technologies.

"Moreover, the sector will also look at receiving more clarity for FDI (foreign direct investment) in B2C (business-to-consumer) e-commerce through an automatic route," he added.

Industry stakeholders are of the view that expectations from the government in the upcoming budget on direct tax issues follows the fact that several challenges have surfaced in the area of taxation in the e-commerce space.

"The characterisation of income is a key issue faced by e-commerce industry both by residents and non-resident players," said Anil Talreja, Partner, Deloitte Haskins and Sells LLP (limited liability partnership).

"There should be appropriate amendments in the budget to provide clarity on the characterisation of income and consequent tax treatment for such payments to put at rest significant litigation."

Besides relaxation in taxes and incentivising digital platforms, experts are of the view that the implementation of the GST may resolve some of the various issues faced by the industry in indirect taxes such as entry tax and collection of tax as agents.

"If the government can amend the provisions of service tax relating to 'intermediary' to end the on-going litigation for some e-commerce players, it would certainly rejuvenate the mood in the industry," Singh added.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
| Edited by: Krishna Sinha Chaudhury
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results