CAIT FLAYED AMAZON, FLIPKART & FICCI DEMANDING DROPPING FOR 1% TDS ON E COMMERCE TRANSACTION PROPOSAL OF THE GOVERNMENT
The Confederation of All India Traders (CAIT) has reacted sharply on media reports that Amazon & Flipkart has pleaded the Government to roll back 1% TDS on e commerce transactions proposed by Finance Minister Smt. Nirmala Sitharaman in Union Budget. ” It is most unfortunate that Industry Organisation like FICCI instead of suggesting avenues for generation of more revenue, is lobbying for e commerce Companies who have been found indulging into unethical business practices not only in India but in other Countries as well and advocating for reversal of 1% TDS on e commerce”-said Mr. Praveen Khandelwal,Secretary General of the CAIT today.
Mr. B.C.Bhartia, National President of CAIT while strongly condemning the move said that proposed levy of 1% TDS on e commerce transactions is a right move of the Government not only for enhancement in tax revenue but also for streamlining the suspicious business being conducted on e commerce platforms. Its a matter of fact that e commerce companies are involved in avoidance of GST Tax revenue by charging GST on artificially lowered prices instead of fair market value of the products being sold on their platforms and the transactions made on such platform are neither transparent nor generate actual tax revenue.
Both Mr. Bhartia & Mr. Khandelwal flayed the argument that it would cause irreparable loss to companies and will increase compliance burden. and it will be detrimental for small online sellers. ” These are filmsy arguments since TDS will be ultimately borne by the consumer and there will be no burden on either seller or e commerce platform. Whereas on the other hand when traders who are not so equipped with technology are complying the laws then how its a compliance burden for tech companies. Such arguments are nothing but an attempt to escape from the lenses of the Government and tax authorities.
Both Mr. Bhartia & Mr. Khandelwal said that levy of proposed 1% TDS is all the more necessary to generate subsequent revenue and the CAIT will ask the Union Finance Minister not to succumb to the pressure of e commerce Companies. The CAIT will also ask the Government to ban Cash on Delivery (COD) on delivery of goods by e commerce companies since its e platform and digital payments should be encouraged on such platform to fulfil the vision of Prime Minister Modi for Digital India.
It is highly regretted that organisation like FICCI is indulging into irresponsible demand. FICCI has never utter a single word on the issue of malpractices being conducted by e commerce companies on their e commerce portals.Supporting e commerce companies which are already facing investigations not only in India but in other Countries as well of their business practices is highly deplorable and the CAIT strongly condemn such demand made by FICCI.
Both Mr. Bhartia & Mr. Khandelwal said that soon a delegation of CAIT will meet the Finance Minister Mrs. Nirmla Sitharaman to to push for investigation for avoidance of GST tax revenue by e commerce companies particularly Amazon & Flipkart. WE will submit evidences to Finance Minister to substantiate our allegation-said the trade leaders.