These companies have been mandated to collect tax at source from October 1.
With only 10 days left, foreign e-commerce companies, like Amazon, Google, Apple, have begun registering themselves for goods and services tax (GST) in all the states.
These companies have been mandated to collect tax at source from October 1. To comply with tax collected at source (TCS) rules, e-commerce players need to register with every state. This provision applies to foreign players as well to cater to Indian consumers.
The industry was expecting the government will allow them a special one-time registration instead of multiple state registrations which adds to compliance costs. However, there has been no respite so far.
As per rule, notified entities have to deduct up to 1 per cent state GST and 1 per cent central GST on intra-state supplies of over Rs 2.5 lakh.
If items worth over Rs 2.5 lakh relate to inter-state, TDS will be 2 per cent of integrated GST.
If the seller is based out of India, there is no TCS liability and this bounds to tax evasion. Hence, the provision of TCS is aimed at checking tax evasion.
Source: Media reports