Skip to main content

Draft law brings all online purchases under its purview

By
The central government’s draft of the national goods and services tax (GST) law says all types of purchases made online will attract a uniform rate.
The tax, in lieu of local levies, will be imposed at the first point of a financial transaction. Every ecommerce operator shall, at the time of payment to suppliers, deduct the GST at a rate recommended by the GST Council.
The model law has 162 clauses and four schedules. It suggests jail up to five years and a fine for breach of the statute.
The tax collection at source system proposed for e- commerce companies would make any payment to a supplier subject to this at the notified rate. “ This will mean significant compliance burden on e- commerce companies, as many of them deal with thousands of vendors,” said Pratik Jain, leader, indirect tax, PwC India.
And, this could lead to a refund issue for many suppliers, operating on a thin margin. “ In addition, e- commerce companies will need to provide details of all supplies made through the platform,” added Jain.
The government has given clear definitions on terms such as ‘ aggregator’, ‘electronic commerce’ and ‘e- commerce operator’. An aggregator is a person who owns and manages an electronic platform and by means of the application and a communication device, enables a potential customer to connect with those providing a service of a particular kind under the brand name or trade name of the said aggregator, it states in the draft.
“There are separate provisions for contract manufacturers and ecommerce businesses, which will help bring uniformity of views across states,” said M S Mani, senior director, Deloitte in India.
The draft says an ‘ electronic commerce operator’ includes every person who, directly or indirectly, owns, operates or manages an electronic platform engaged in facilitating the supply of any good or service.
Business Standard New Delhi,15th June 2016

Comments

Post a Comment

Popular posts from this blog

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the...
Post a Comment
Read more

SFBs should be vigilant, proactive to mitigate risks: RBI deputy guv

By
  The Reserve Bank of India’s Deputy Governor Swaminathan J on Friday instructed the directors of small finance banks (SFBs) to be vigilant and proactive in identifying emerging risks in the sector.Speaking at a conference for directors on the boards of SFBs, Swaminathan highlighted the role of governance in guiding SFBs towards sustainable growth with stability. He also emphasised the importance of sustainable business models.Additionally, he highlighted the need for strengthening cybersecurity to protect the entities against digital threats and urged for a stronger focus on financial inclusion, customer service, and grievance redressal to ensure a broader reach of banking services.Executive Directors S C Murmu, Rohit Jain, and R L K Rao, along with other senior officials representing the Supervision, Regulation, and Enforcement Departments of the RBI, also participated in the conference.   -  Business Standard  30 th  September, 2024
Post a Comment
Read more

Brigade Hotel Ventures files draft papers with Sebi for Rs 900 crore IPO

By
  Brigade Hotel Ventures Ltd, owner and developer of hotels in South India, has filed draft papers with capital markets regulator Sebi to raise Rs 900 crore through an initial public offering (IPO).The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP).Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the Promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.The company may raise up to Rs 180 crore through a Pre-IPO Placement.   If the placement is undertaken, the issue size will be reduced.Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises ...
Post a Comment
Read more