Thursday, October 9, 2014

E' COMMERCE- Domestic Law v INternational Law ( mainly Tax Treaties)

Topic Worth a Close Study >

Oct 26

The real issue with Flipkart

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Oct 12

A maze That's online retail for now TijanaM/shutterstock.comIt is ironic that the very same businessmen who complain of stifling laws that make it difficult... »
Shanker Gopalkrishnan
The brick-and-mortar retail sector is a policy orphan; the Centre can make changes but State... »      1 comment

from Archives (2004) >

The Hindu Business Line : Is taxing e-commerce feasible?

More Stories on : Taxation | E-Commerce & E-Business 

Rightly referred to as 'stories' ?! Yes ? Yes !

Latest from the story book is Kar, , as often regarded the trend setter, gone ahead and imposed VAT liability on Amazon, one of the players in the field of eCommerce.
But the very rudimentary point of grave doubt is, - why and how VAT, of all levies ? It is mind-boggling if one ventures to go into as to what really is the 'value added'  to the goods sold, at the point of Amazon ware house though which the 'goods' are routed, before delivery to buyer who has Redeemer online, with payment made likewise online. The tragedy is, at the end of the day, the tax collector will have the first say; and leaving it open to be debated and disputed, eventually with no alternative left but to go in for a ding dong litigation, as inconclusive as ever before.

In the ultimate analysis, burden is on the consumer , setting in motion the inevitable drastic dreaded consequences- good or bad- adding to the 'inflation' , the 'economy', besides the woes of one and all in terms of compliance cost, inclusive of unavoidable  implementation and enforcement cost to the exchequer , also to the  consumers/taxpayers, sans the person on whom the levy is imposed upfront.

Last but not last, difficult problems arise if , as required, the implications of the tax treaty , applicable in a given case, were to be not lost sight of but be duly taken into account and given proper effect.


IMPROMPTU (for sharing personal thoughts)

"Don’t just sell in India, invest"   - In so telling , rather pushing , and trying to sell, his "pet theme",  he obviously has had in mind,  only sales "in India" , with its simple and straight forward tax implications which such sales clearly entail,  and the investors ought not to be shy of but be taken to be fully aware and conscious about in taking a decision heeding to Modi's appeal.  But might not be so simple, should that be sales "TO INDIA", which has a distinct tax implications, if regard be had to not only the domestic law but also the possibly applicable tax treaty. In saying so, one has in mind the  ongoing controversy on sales through lately catching up e’Commerce.

Over to eminent and truly equipped "Experts", in the empowered North Block, besides those at large, for a proper study and guidance to all concerned.


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