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NEW DELHI: Ecommerce players such as Amazon and Flipkart will be required not just to collect tax at source but also register in each state under the proposed goods and services tax (GST) regime as both the central and state laws provide for the levy.  The latest draft of the law has kept out service aggregators from its purview but seeks to cover certain notified services where the liability to pay GST shall be shifted from the actual service provider to the electronic commerce operator. According to the draft law, an ecommerce operator is required to tax collect at source (TCS) 1% of the net amount collected on behalf of the supplier of the good.  This would mean that for compliance, an ecommerce operator would be required to register in each state from where the supply is being made, including the supply of services, and deduct the tax under the respective GST laws in each state.  Not just this, the supplier would also be required to register under the GST laws in tha...

The GST Council meeting was postponed from November 25 to December 2 because the officers’committee was not ready with the revised draft Bills.Were there differences between central and state officials on major issues? The meeting was put off because the larger group of officials of all states and the Centre met on November 21 and 22 to look into the draft and clean it up.It had been looked in to by the technical committee of officers earlier,a smaller group.It was not possible look into the entire draft Bills and cleanup so early.That is why the GST Council meeting was postponed. Was every issue in the drafts sorted by consensus or a majority viewtaken? There was consensus on most points in the Bills. Wherever there are differences among state officials or between central and state officials,those could be taken up at the GST Council meeting. Rates were not given in the Bills. Will those come through notification? Those were not given because flexibility is required. Suppose we inclu...

With the last date for payment of tax instalment under Income Disclosure Scheme (IDS) drawing close, the Income Tax Department on Sunday warned declarants that non-payment of first instalment by November 30 will make declarations invalid. The IDS, which was open from June to September, provided a one-time opportunity to domestic blackmoney holders to disclose wealth and come clean by paying 45% tax and penalty. The first installment of tax of 25% is due to be paid by November end, to be followed by another installment of 25% by March 31, 2017. The remaining amount will have to be paid to the exchequer by September 30, 2017. "The first instalment of tax under the IDS is now due... Non payment of the instalment will render your declaration under IDS 2016 invalid," said the Income Tax Department advertisement. Under the scheme, as many as 64,275 declarants disclosed an amount of Rs 65,250 crore. This would yield Rs 29,362 crore in taxes to the government. The average declaratio...

SAYAN GHOSAL The government’s recent demonetisation scheme has given a fillip to digital transactions in the traditionally cash-based economy. Amid the changing times and the plethora of conveniences associated with e-payments, experts have again highlighted the lack of a comprehensive data protection and privacy framework. The Nilson Report, a trade newsletter covering the card and mobile payment segments, estimates fraud losses incurred by banks and merchants in electronic transactions reached the equivalent of $21.8 billion in 2015. This figure is expected to grow as more and more transactions go cashless. India’s recent brush with transactional fraud, involving 3.2 million debit cards, have highlighted the growing necessity of ensuring safety and security in the digital payment space. Advent of an e-payment regime now places a greater responsibility on the government, corporate entities and citizens alike to spread awareness about the associated risks, to ensure a well-protected f...