NEW DELHI: Facing all around attack, Finance Minister Arun Jaitley on Tuesday withdrew his Budget…
NEW DELHI: Faced with a saturated taxation system and rising expenses on works like drought relief which have led to a spiralling revenue deficit, the state government is looking at tapping new sources of revenue and plugging any evasion in transactions on e-commerce portals.
The 2016-17 Budget also touched on computerisation in the sales tax department, ease in registration and assessments and amendments to plug tax evasion by showing a below market sale prices. Finance minister Sudhir Mugnantiwar also announced an amnesty scheme for pending dues which, officials estimate, will unlock around Rs500 crore revenue.
Sales tax accounts for the highest chunk of the state government’s revenues (30.08%) at Rs81,437.69 in 2016-17.
“In the era of Digital India, e-commerce transactions are increasing. It is proposed to periodically obtain information from e-commerce companies regarding sales-purchase transactions made on the portal. Penalty shall be imposed upon a portal for not furnishing the information,” said Mungantiwar in his budget speech.
Officials said the measure was aimed at plugging tax evasion by sellers on these portals.
“These portals are platforms for sellers and buyers and charge commission from sellers. They will need to give us information about these transactions in a format to be notified soon. We are trying to check if suppliers from Maharashtra who have a turnover of above Rs10 lakh are registered with us and if they are registered, are they paying tax,” a senior state government official explained.
“On the backdrop of forthcoming Goods and Services Tax, some states like Bihar, Himachal Pradesh, Gujarat and Madhya Pradesh have announced amnesty schemes for pending dues. The tax liabilities on the transactions in many cases is a matter of dispute. Such matters are pending in appeal before various courts,” said Mungantiwar, adding that this would do away with trouble for both, the dealer and the government.