Top Story

e4m_logo.png

Home >> Digital >> Article

Kerala imposes Rs 54-cr fine on Flipkart, Jabong, two other e-comm companies

28-January-2015
Font Size   16
Kerala imposes Rs 54-cr fine on Flipkart, Jabong, two other e-comm companies

Media reports say that the Kerala Commercial Taxes Department has slapped a fine of Rs 54 crore on four e-commerce companies, including Flipkart and Jabong, for tax evasion.

The intelligence wing of the Commercial Taxes Department imposed the fine for the last two years, the reports say. E-commerce major Flipkart has been fined Rs 47.15 crore, Jabong Rs.3.89 crore, Vector e-commerce (which has a stake in Myntra) Rs 2.23 crore and Robemall Apparels (which runs Zovi.com) Rs 36 lakh, stated reports.

This is not the first time that e-commerce companies have faced an issue with state tax departments. Last year, Amazon, had run afoul of the Karnataka government over whether it was liable to pay VAT on goods sold in the state. Punjab is another state, which has been adopting a tough stance on e-commerce in recent months.

The situation in Kerala is in limbo as last year some e-commerce companies had stopped delivering products in the state after the government banned the CoD (Cash on Delivery) service. Though, reportedly, delivery has restarted, there is no clarity whether the ban on CoD still applies.

The lack of a framework for taxation of e-commerce companies is one reason why e-retailers are looking forward to the implementation of GST. GST is expected to unify disparate taxes at the centre and state level under one umbrella and make the process of taxation easy for the retailer. Besides, even if the currently expected GST rate is not reduced, retailers say that products will cost less under the new tax regime.
 

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

The beauty of the internet business is that as your cost curve flattens, your revenue curve keeps growing up and that's why the valuations are so high, said Ashish Hemrajani, Founder-CEO, BookMyShow

While domestic and international brands are competing for a bigger pie of the growing digital content market, Reliance Jio with its Jio Studios has added a new dimension to this competition.

At the Ad Club Knowledge series event in association with Hindustan Times presented an interactive session with Chandramouli Venkatesan, CEO (special projects) - ‎Pidilite Industries Limited, on his b...