Kerala slaps Rs 54 cr fine on 4 online traders like Flipkart, Jabong

The Kerala government has slapped a fine of Rs 53.63 crore on four online trading companies including Flipkart and Jabong for allegedly doing illegal business in the state.
Kerala slaps Rs 54 cr fine on 4 online traders like Flipkart, Jabong

New Delhi: The Kerala government has slapped a fine of Rs 53.63 crore on four online trading companies including Flipkart and Jabong for allegedly doing illegal business in the state.

The fine was imposed by the intelligence wing of the Commercial Taxes Department for the year 2012-13 and 2013-14, an official release said.

E-commerce major Flipkart has been asked to pay a fine of Rs 47.15 crore, Jabong.Com Rs.3.89 crore, Vector e-commerce Rs 2.23 crore and Robemall Apparels Rs 36 lakh, the release said.

The sales tax department has said the companies have been penalised for evading taxes for the last two years and that they are looking at other online retailers too.

Earlier in 2014, online retailers such as Jabong, Myntra, Flipkart and Snapdeal had stopped delivery to Kerala cities as the state tax department had banned cash on delivery serices.

Amazon India also faced a similar situation in the Karnataka when the state tax authorities found that the company wasn't paying value added tax (VAT) for transactions on its online platform.

In October 2014, Tamil Nadu government had also asked online retail companies to ensure they paid taxes on all transactions.

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