By: PTI|New Delhi|
TCS provision would increase compliance
burden for e-commerce companies however assist government in inspecting tax evasion.E-commerce companies will from October 1 need to deduct 1 percent tax collected at source(TCS) before making payments to their suppliers.The Finance Ministry Thursday notified TCS at the rate of 0.50 per cent of the net value of intra-state taxable supplies made through the e-commerce portals by other providers in the Central Tax law.States too would
follow suit and alert levy of 0.50 per cent SGST on intra-state supplies.In the case of inter-state materials by the e-commerce companies, Integrated GST (IGST)at the rate of 1 per cent would be subtracted in the form of TCS while making payments to suppliers.The ministry had recently notified October 1 as the date for execution of the TCS provision under the Product and Services Tax (GST )law. The law offered for levy of approximately 1 per cent TCS.EY Tax Partner Abhishek Jain said,”As the law had provided a levy as much as 1 per cent, the
e-commerce market was awaiting this release of the precise rate of TCS– basically to configure it into their system.”The GST, which subsumed over a dozen regional taxes, was presented from July 1, 2017. To make it simpler for businesses in the initial months of rollout, TDS/TCS arrangements of GST laws were kept in abeyance till June 30. Later on, it was postponed till September 30, 2018. TCS arrangement would increase compliance burden for e-commerce business however assist federal government in examining tax evasion.Must See For all the most current
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