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Are E-Commerce Websites Compliant With Indian State/Center Tax Laws?

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eBay.in is a big time fraud in regards to Taxes, they are allowing everyone without any compliance. But as per their T&C Seller / Buyer are responsible for Taxes, Duties etc.

And as I said earlier 5% & 13% VAT for same item in 2 diff states, Margin comes to 8%, Wholesale business works on 4-5% margin and here people can earn much just due to tax variation. While GST will stop all of this.

Only defining terms & condition not enough to play with duties & taxes, (ebay founder or local MD is not Ambani Brothers). as per law, if you are not collecting taxes as per applicable, seller is responsible, he know law or not.

and ebay is fully involved. (they are showing of 2nd sale or used items sale, but backend they are selling fresh new items) some ebay sellers issuing VAT invoice too, and using ebay as e commerce platform, but most of them not paying due taxes.

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Err no, in fact many ebay sellers clearly say they will not ship to WB and some parts of UP and NE (a few examples) because here waybill is required (and it is thec customer's responsibility to get the waybill - ridiculous!)

My guess is you are looking at the wrong problem. Waybill, CST, entry tax - are all anti business and ultimately anti people. If ecommerce websites stopped shipping due to lack of waybill then who is the end loser? The customer. Not the etailer, not the archaic government - but the customer who cannot buy something cheaper and quicker online

If you really want to file a PIL, focus on an uniform tax which should do away with the multitude of VAT, CST etc

You are debiting tax system simplification & thread topic is " E-Commerce Websites Compliant With Indian State/Center Tax Laws? " I am talking with current tax system, which we have to follow and I am clear about my wish : not to lose any employments of local residents due to unhealthy competition.

You see, any MNC like Amazon or wallmart can put tiny amount (for them) and they can spoil local business.

Why Amazon USA collecting state tax while delivery on particular state address.

In my view ebay.in is fraud, they are supporting anti tax practice and arranging deliveries.

Uniform tax system (GST), Govt is planning but accounts must be on computer system for smoother flow, online work etc. which is currently not suitable for Indian condition, in Hyderabad, in day time 4 hrs. power cut applicable, Industries need to close 3 days in week due to power shortage.

All the best.

I am not debating whether e-commerce websites are compliant with current laws or not. That has already been answered by many more knowledgeable members, and to me it seems the jury is out on it - and there is no conclusive proof that e-tailers are engaging in fraud

Let me explain my earlier post. I just happened to spot in the OP that you plan to file a public interest litigation against unfair trade practices of e-tailers, so I responded. Because the irony is, that this PIL, if filed, will not be in public interest of the consumer

This leads to the crux of the problem - India has archaic tax laws, and due to non-uniform taxation imposed by states the situation is in a mess. Why should a resident of WB have to arrange for a waybill when someone from neighboring OR does not need to? GST aims to do away with it - but as you rightly said, GST is not yet implemented

Your post itself highlights more pressing concerns which merit PILs - 4 hourly power cuts for example. We have seen examples of good-intention-ed but misguided PILs in India (e.g. based on a single PIL the HC banned tinted glasses in all cars - without taking into account the pros and cons clearly)

Edit - also there is a MNC vs local business debate that you have brought into the argument. I will not debate it, but historically competition has been good for the industry and for the consumer - in all industries. India is a mature enough economy now and non-essential FMCG

local businesses do not really need underhanded protection

Anyway, we can agree to disagree. All the best to you also

Edited by digitalnirvana
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Why state govt collect taxes ?

Who is responsible to pay tax ?

Who is responsible to collect state taxes and deposit in state tax ?

If seller selling from other state, how state govt collect local taxes ?

Any arrangement of sharing central sales tax with state ?

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