E-commerce companies under the line of alleged VAT evasion, says Karnataka government

The Karnataka government has issued out orders in the Legislative Assembly for assessment of all allegations of tax evasion by the eCommerce players.
E-commerce companies under the line of alleged VAT evasion, says Karnataka government

The Karnataka government has ordered assessment of all allegations of tax evasion by the eCommerce players during the legislative assembly held recently, which reportedly caused the state exchequer a loss close to 2,000 crore.

"We won't exempt any eCommerce company or online marketplace from payment of value added tax. We're not under pressure to leave out any eCommerce company, including Amazon India, from tax payment. We won't spare anyone if irregularities are confirmed,'' said the Chief MinisterSiddaramaiah, while discussing on the budget.

He also pushed on the firm observance measures to be implemented by the commercial tax department after theAmazon India controversy. “Many companies have fallen in line,” he said.

On the opposition’s allegation of the transfer of commercial tax commissioner Ajay Seth, who issued notice to Amazon India for tax evasion, Siddaramaiah said "He went on leave since he wanted to spend time with his only daughter when she prepared for exams. I requested him to continue till the current financial year but he was reluctant."

He also ordered a close examination of the Amazon case. "VAT is the bread and butter of the state. No business transaction should happen without VAT payment. I'll get the case thoroughly reviewed and not succumb to any pressure or influence, no matter how big the company," the CM said. 

He also talked about the notice issued to many eCommerce companies like Myntra, Alibaba, Amazon India and Flipkart. “Most have responded favourably, Flipkart alone paid Rs. 226 crore in tax this year,” he added.

He also dispelled the fears of opposition parties on revenue collection dipping in the state and said Karnataka is way ahead when it comes to tax collection in the country.  "I'm proud to say we're way ahead in revenue collection among all southern states,'' he added.

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