The IAMAI-PwC Report also identified areas that needed improvement. It highlighted difficulties in determining the jurisdiction in which value creation takes place and, consequently, the right to tax.
The Indian arm of global auditing major PwC and the Internet And Mobile Association of India (IAMAI) in a joint report on the Impact of GST on Online Marketplaces has recommended specific provisions for e-commerce and defining e-commerce transactions clearly. “If the rules framed under GST put the onus on e-commerce players to disclose and provide...#
Multiple levy of taxes at different stages of transactions and implications of the FDI policy, is another area that needs to be addressed.
It also flagged the ambiguity on the taxation of digital supplies and the lack of clarity among authorities regarding various online marketplace business models, resulting in conflicting claims on the jurisdiction entitled to tax a given transaction.
The Requirement of the marketplace to pay tax and multiple compliances, also needs to be addressed, it said.
Commenting on the issue, Sandeep Ladda, Partner & Leader – Technology & E-commerce, PwC India said, “The proposed GST is perceived as the single biggest indirect tax reform in India and is expected to bring in a simpler tax structure with a seamless credit chain. The 'one tax, one market' concept on which GST is based should be a welcome step for online marketplaces. To create clarity in terms of the tax treatment of online marketplace sector transactions, sector-specific provisions need to be introduced in the GST regime.
"The companies will have to follow the 'whole of business' approach for GST impact assessment and implementation, where tax and business advisory teams work together to provide a seamless service to clients that covers all necessary business aspects. Only then will the sector be able to utilise its potential in this market.” (SH)
ALCHEMPro News Desk – India
marketing@alchempro.com
