Tamil Nadu Commercial Tax amendment to net more tax on e-sales

Concerned over this, the TN commercial tax department has proposed amendment laws to ensure all taxes paid by consumers through online transactions reached the state treasury. Pointing out that the definition of e-commerce did not exist before the internet revolution, the commissioner of state commercial taxes, K. Rajaraman, said following the advent of e-commerce Kerala brought the cash-on-delivery (COD) system taxable, while West Bengal ensured certain provisions.

“We are working on certain amendment to get the tax paid by consumers reach the government,” he said while addressing a one-day seminar on “e-commerce and the consumer responsibilities and rights” held under the joint auspices of the Consumers Association of India and the department of civil supplies and consumer protection, TN, here on Saturday.

“VAT, for instance, is destination based tax. Both the state and central governments are opposed to FDI in retail. We hope that the harmonisation of both VAT and GST may happen soon,” he said deploring that several online sellers did not disclose their business models.

“Online transactions can’t be hidden and are traceable as they are made with credit or debit cards,” he said. The department’s enquiry found that many failed to provide full details on the online transactions.