wordpress blog stats
Connect with us

Hi, what are you looking for?

Delhi Govt makes it mandatory for ecommerce cos to file transaction info

cmn-Amazon

Late last week, the Delhi Government made it mandatory for all ecommerce companies and platforms to file transaction information by their sellers and traders via their platforms or website. This is a move that will help the Delhi Government’s Department of Trade and Taxes to identify sellers of goods and services, and ensure that adequate taxes are being paid by the sellers. The Delhi Government says that it had come to its notice that “some dealers/sellers engaged in the selling of goods through online portals were not depositing the due tax that they owe to the Department, even after collecting from consumers”. This addresses a long standing regulatory loophole, where neither ecommerce websites nor merchants were paying the requisite tax, for which tax departments have, in some states, taken action against the ecommerce platforms themselves, holding them accountable for the actions of merchants on their platform.

Delhi, Kerala and Rajasthan are three states which recognize that ecommerce platforms aren’t merchants, and hence this is a move to ensure that the government has enough information to identify sellers, and check if taxes are being paid by them or not.

As per this notification:
– e-commerce companies/firms/firms have to log on to website of the Department www.dvat.gov.in to enrol themselves by furnishing some basic information online in Form EC-I.
– Following this, a unique Id will be generated which will be utilized for online submission of forms EC-II & III.
– They have to file quarterly return in Form EC-II & III since 1st quarter 2015-16.
– The last date for filing of EC-II & III for the 1st quarter 2015-16 is 30.09.2015.
– The sellers/dealers etc. selling goods from e-commerce web-portal have to submit their particulars such as TIN Number, PAN No. to the concerned e-commerce web-portals.
– The sellers/dealers selling goods from e-commerce web-portal have also to submit details of their sale/purchase in Annexure 2A & 2B of DVAT- 16 or else penalty u/s 86(12) or u/s 89(2) of DVAT Act, 2004 will be imposed.
– Non-compliance of the notification shall be treated as violation of the various provisions, especially U/s 59(2) which attracts penalty of Rs. 50000/- under section 86(14) of Delhi Value Added Tax Act, 2004.

Why is this needed?

This is a good move because it establishes the fact that ecommerce platforms aren’t going to be held accountable for non-payment of tax by sellers on their platform. At a law and technology conference, Snapdeal’s general counsel Ashish Chandra had talked about instances of state governments, which don’t have the wherewithal to go after individual sellers avoiding tax, actually imposing it on ecommerce platforms instead: “We earn only 4-5%. If you ask us to pay 16% tax which should be paid by the seller, who will do an ecommerce business in India?”

Advertisement. Scroll to continue reading.

“Thankfully,” Chandra had said, “with all the intervention from the ecommerce companies, there are three states (Delhi, Kerala and Rajasthan) which have a legislation which says that ecommerce companies are not sellers. They’re service providers. The only thing they have to do is provide the information about sales on the sites, and then the duty is of the government to do any reconciliation. That’s the right way to legislate.”

Must read:
Snapdeal’s Ashish Chandra on the regulatory challenges that ecommerce companies face in India
– Buy our report: The Structuring of Ecommerce businesses in India.

The press release from the Delhi Govt

TRADE AND TAX DEPARTMENT ISSUES DIRECTIONS, MAKES MANDATORY FOR ALL THE DEALERS/SELLERS ENGAGED IN THE SELLING OF GOODS THROUGH ONLINE PORTALS TO FILE THEIR INFORMATION ONLINE WITH REGARD TO TRANSACTIONS MADE BY SUCH SELLERS/TRADERS THROUGH THEIR PORTAL

· THE DETAILS OF NOTIFICATION AND ACT & RULES ARE AVAILABLE ON DEPARTMENT’S WEBSITE (WWW.DVAT.GOV.IN). PASSWORD FOR LOGGING IN WOULD BE COMMUNICATED THROUGH E-MAIL.

· NON-COMPLIANCE OF THE NOTIFICATION SHALL BE TREATED AS VIOLATION OF THE VARIOUS PROVISIONS, ESPECIALLY U/S 59(2) WHICH ATTRACTS PENALTY OF RS. 50000/- UNDER SECTION 86(14) OF DELHI VALUE ADDED TAX ACT, 2004

New Delhi: 04/09/2015

Advertisement. Scroll to continue reading.

To regulate the dealers/sellers engaged in the selling of goods through online portals, the Trade and Tax Department has made it mandatory for them to Deposit the due tax that they owe to the Department to file information online with regard to transactions made by such sellers/traders through their portal. Taking into consideration the Notification issued by Department of Trade and Taxes, Delhi vide No. F.3 (515)/Policy/VAT/2015/330-41 dated 26/06/2015, the Department of Trade and Tax has made mandatory for all e-commerce companies/firms providing e-platform facility to file information online with regard to the transactions made by such sellers/traders through their portal.

In the financial year 2014-15, it had come to the notice that some dealers/sellers engaged in the selling of goods through online portals were not depositing the due tax that they owe to the Department, even after collecting from consumers. As e-commerce is an emerging and fast growing sector, department felt it imperative to regulate these dealers so as to bring them under the ambit of VAT. In this direction, through which it had with the Department.

Department recently convened a meeting with representatives of e-commerce web-portals on 27.08.2015 and has removed all the apprehensions in this regard. In line with the aforesaid notification, e-commerce companies/firms/firms have to log on to website of the Department www.dvat.gov.in to enrol themselves by furnishing some basic information online in Form EC-I. On successful furnishing of data, a unique Id will be generated which will be utilized for online submission of forms EC-II & III. Thereafter, they have to file quarterly return in Form EC-II & III since 1st quarter 2015-16. The last date for filing of EC-II & III for the 1st quarter 2015-16 is 30.09.2015.The sellers/dealers etc. selling goods from e-commerce web-portal have to submit their particulars such as TIN Number, PAN No. to the concerned e-commerce web-portals. The sellers/dealers selling goods from e-commerce web-portal have also to submit details of their sale/purchase in Annexure 2A & 2B of DVAT- 16 or else penalty u/s 86(12) or u/s 89(2) of DVAT Act, 2004 will be imposed. Further, non-compliance of the notification shall be treated as violation of the various provisions, especially U/s 59(2) which attracts penalty of Rs. 50000/- under section 86(14) of Delhi Value Added Tax Act, 2004.

The details of Notification and Act & Rules are available on Department’s website (www.dvat.gov.in). Password for logging in would be communicated through e-mail.

Advertisement. Scroll to continue reading.
Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

News

By Stella Joseph, Prakhil Mishra, and Yash Desai The Government of India circulated proposed amendments to the Consumer Protection (E-Commerce) Rules, 2020 (“E-Commerce Rules”) which...

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ