New Delhi, May 26:
The Income Tax department has trained its scanner on
the burgeoning ‘e-commerce’ business in the country with the taxman
deciding to monitor a host of services conducted by these popular online
portals to better fill up the revenue kitty.
After
making an official assessment report on the online retail business in
India, the department has decided to track these “huge businesses”
conducting services for extracting the special category of Tax Deducted
on Source (TDS) which is taken from the payment made by firms and
organisations for getting special services done on the internet retail
space.
A “strategy action plan” formulated by the
CBDT, the apex policy making body of the I-T department, for bolstering
revenue collection in the current fiscal, has asked taxman to pay
special attention to this area of business.
The
action plan prepared for 2015—16, also accessed by PTI, states that
advertisements on different websites of various organised and
unorganised agencies, payments for jobs like creating a website,
translation of pages, data entry of text, research, among others are
areas which can yield “significant revenue” under the TDS category.
“The
e-retail or e-commerce business is a fairly new avenue from the view
point of collecting taxes and the sector is witnessing huge money
changing hands. The department has prepared some trends in this regard
and it has been decided to seriously tap this popular online sector for
better TDS collections,” a senior I-T official said.
“A
lot of people now purchase their daily goods or choice items through
popular online retailers. A number of entities involved in the
operations of these web portals are beyond the tax radar and as part of
CBDT’s initiative to widen the tax base, this sector is important to be
tapped,” the official said.
As per industry
estimates, e-commerce business in India was about $6 billion in value in
2012 and is expected to reach $76 billion by 2021.
Source : http://www.thehindubusinessline.com/
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