CAT welcomes proposal to levy 2 p.c extra tax on e-commerce firms

The union funds proposal to impose an extra tax of two p.c on overseas e-commerce firms has been welcomed by the tireless efforts of the Confederation of All India Traders (CAT). CAT’s nationwide vp Amar Parvani stated that CAT had been urging the federal government to clamp down on e-commerce firms for the previous a number of months. This is a serious step below this. Now many different steps are more likely to be taken on this method. Finance Minister Nirmala Sitharaman and Commerce Minister deserve thanks for this.

Amar Parvani stated that this provision has been made by proposing amendments in part 163 sub clause (3), part 164 clause (cb), part 165 sub clause (3) and clause (b) of the Finance Act, 2016 within the funds. These provisions will come into power from the earlier date of 1 April 2020. Not solely Amazon and Flipkart, but in addition Google, Microsoft, Zoom and different such overseas firms, that are engaged in promoting items or offering providers by means of any on-line medium, will come below this provision. And they should pay 2 p.c extra tax from April 1, 2020. This is a giant and daring transfer of the federal government, which was warmly welcomed by merchants throughout the nation.