In a new development, the Delhi HC has provided time until November end for e-commerce companies to start filing mandatory quarterly returns along with specific information on sellers.
The Delhi government in September made it compulsory for e-commerce companies to file such returns to keep tax-evasion on check.
“Attention! All e-commerce web portals. It is compulsory to enroll with the department by filing form EC-1 online,” said the ad issued on Monday by Department of Trade and Taxes on its portal.
Tax officials believe that the move will remove a loophole in the system by which a number of e-commerce sellers headquartered in other countries evade applicable tax payable to the government.
A Similar Tussle Between Karnataka & Amazon
The Karnataka government had questioned Amazon’s fulfillment center model last year. The government was pressing on imposing VAT on goods sold through their site and even suggested a workaround to impose such taxes.
Karnataka’s Commercial Taxes Department laid down two conditions in the workaround which Amazon immediately disagreed to—“Amazon India must disclose details of transactions carried out on its website. It must take primary liability if a merchant defaults paying value-added tax on transactions executed on Amazon,” stated the government.
UP, Kerala and Delhi have already mandated disclosure of monthly sales data for all vendors licensed by the government.[Source]