×
E-PAPER ▾

E-paper

Business

Ecommerce cos to pay up to 1% TCS under GST

| | New Delhi

 E-commerce firms like Snapdeal and Amazon will have to mandatorily deduct up to 1 per cent TCS (Tax Collected at Source) while making payments to their suppliers under the GST regime which is expected to kick in from July 1.

The model Goods and Services Tax (GST) law, finalised by the GST Council, provides for 1 per cent TCS to be deducted by the e-commerce operators.

The model law provides that every electronic commerce operator, not being an agent, shall collect up to one per cent TCS, as may be notified on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.

Experts had raised concerns saying this would mean that a similar amount will have to be levied on inter-state movement of goods, taking the total TCS deduction to 2 per cent.

“We have included the word ‘up to’ in the final model GST law. This would mean that TCS would not exceed 1 per cent of the sale proceeds,” an official said.

Industry has been expressing concern over the TCS provisions saying it would mean a lock-in of capital and also dissuades companies from selling through online aggregators.

E-commerce companies will also have to file returns on the TCS deductions, but in case of return of goods by the consumer, these companies will not have to deduct TCS as there is no actual sale.

The model law had defined ‘electronic commerce’ as supply of goods or services, including digital products, over electronic network.

‘Electronic commerce operator’ would mean those persons who own, operate or manage digital or electronic facility or platform for electronic commerce.       

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

Court proceedings end in a lighter vein

20 May 2018 | PNS

New Delhi: “Now, let us enjoy our holidays,” this is how the Supreme Court concluded the hearing on the Karnataka power row on Saturday. The courtroom burst into a bout of laughter as Justice AK Sikri, who headed the three-judge Bench, made the jovial remark ...

Read More

STATE EDITIONS

View All

Women’s youth camp under ‘Go Rurban’ series

22 May 2018 | Staff Reporter | Bhopal

A women’s youth camp under Go Rurban camp with the objective to connect rural and urban youth together will be held at village Sijora district Dindori. The basic idea of the camp is to build a stronger bridge in order to fill the gap between rural and urban society...

Read More

Page generated in 0.1907 seconds.