Tax authorities in India are working on ways to get the E-commerce companies pay sales tax in respective states. According to a new report, the Punjab excise and taxation department has started a survey to figure out revenue loss to the state.
Apparently, the state government is missing out on taxes because e-commerce companies are paying taxes in the state of origin (or where they have their warehouses.)
Excise and taxation officer Shivani Gupta told The Hindustan Times that the department was procuring details of customers and sale of products through websites. The department is planning to ask retailers to setup warehouses in the state so that they can earn from online shopping. (via)
In Kerala, a similar situation prevails. The sales tax department in Kerala doesn’t allow companies like Flipkart and Amazon to sell in the state without paying sales tax.
Aside, Kerala and Punjab account for the highest per capita consumption of alcohol in the country. That’s a lot of tax money already!