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Traders' body demands 5% additional tax on e-commerce companies

Traders' body FAIVM advocated levying income tax on partnership firms and limited liability partnerships at 22 per cent instead of the present 30 per cent, bringing it at par with corporate tax rate

twitter-logoBusinessToday.In | January 5, 2021 | Updated 00:29 IST
Traders' body demands 5% additional tax on e-commerce companies

Traders' body Federation of All India Vyapar Mandal (FAIVM) has demanded imposing a special tax of 5 per cent on the total business of e-commerce companies.

In its Budget wishlist released on Monday, the trade organisation has said that increasing online e-commerce is affecting the domestic traditional retail business, so it is very important to impose a special tax of 5 per cent on the total business of e-commerce.

"This will also increase the revenue of the government and make the traditional retail of the country competitive," said their Budget proposal.

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The traders' body also advocated levying income tax on partnership firms and limited liability partnerships at 22 per cent instead of the present 30 per cent, bringing it at par with corporate tax rate. It also requested the Finance Minister to ensure that the provision to deduct tax on the source should be applicable only to those traders whose annual turnover is more than Rs 10 crore.

"Excessive Deduction of Tax at source is a capital blocking exercise. In the year 2019-20 CBDT issued refund order to the tune of Rs 2 lakh crore approximately, which indicates excessive level of rates under TDS. TDS provisions should be applicable to the entities whose turnover exceeds Rs 10 crore in previous year," it said.

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In order to rectify the error in the GST return happened earlier due to ignorance, FAIVM asks for introduction of the amnesty scheme in the GST similar to Vivaad se Vishwas scheme to settle small litigation in GST.

"Government must give a chance to rectify these errors without any monetary penalty," said the traders' body

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