26 July 2024
Tax Exemption for eCommerce ?!
India Tech.org, a start-up industry body, wrote to the government on December 8 seeking changes in currently applicable tax norms to provide a conducive environment in this tumultuous time for startups across sectors to accelerate growth.
It is expected to positively affect companies dealing in the travel and e-commerce sector like Ixigo and OYO. Currently, in contrast to offline businesses, e-commerce participants are levied with 1% TDS on gross sales of goods and services and an additional 1% tax apart from GST of 18%. Suggestions have been presented for amendment of TDS, abolition of all additional GST and levying 5% net GST on eCommerce with the introduction of special incentives for e-commerce businesses to establish warehouses and infrastructure in Tier-2 and Tier-3 locations.
