Hanna Vinod Bhaskar, LLM, CHRIST Deemed to be University, Bangalore
ABSTRACT
Tax is defined as a compulsory contribution to the state revenue. The World Trade Organization's Ministerial Declaration on E-Commerce defines it as "the production, distribution, marketing, sales or delivery of goods and services by electronic means." Now comes the main discussion on the significance of taxing e-commerce in the virtual world when neither the manufacturer nor the consumer is seen. If there is no intermediary, why is the payment of taxes in e-commerce so discussed? Furthermore, this research aims to resolve some common doubts about why E-Taxation is the decisive concern of developing India. What challenges will E-Taxation encounter, and how will it clear the air between these disputes, including the primary problem, the modus operandi for collecting taxes? The known presumption is that no one wants to pay taxes.
Given an opportunity, every taxpayer would at least try to spend a minimum of taxes. The only method to resolve this is to provide a non-discriminative approach to levying taxes, whether online or offline As the Organisation for Economic Cooperation and Development (OECD), a 30-member organization, has proposed that the basis of online taxation must be equitable, practical, simple, flexible and distortions free. While we look into the prerequisite to collect taxes, physical presence and permanent establishment are required, and a website with both requirements could be more precise. Also, other factors like sale points, product, and income classification must be revised when determining tax rates. Improper knowledge of e-commerce and tax leads to situations where people are unaware, creating more complex scenarios. However, our priority needs to be more focussed on how effectively we can regulate the taxation on e-commerce based on the available resources and methods known to our economy and, later, how we can increase the knowledge. It is also interesting to know that our country and many other developed nations face the dilemma of knowing what to do with e-commerce taxing. Like determining the geographic locations of the computers and systems upon which the payments had been made, the ownership of websites creates another mystery yet to be solved. Another secret lies in identifying the state, country, or countries with tax jurisdiction over the income generated. The vast possibility of carrying out business anywhere with any number of consumers and no limit creates an unaware state of taxing the virtual world. This study focuses on problems likely to arise when taxing e-commerce comes and possible solutions. It also covers the terms of taxation and e-commerce in an economy. E-commerce can and will be taxed. It has to be taxed relatively after studying the pros and cons of methods used to determine the Tax. The question we will encounter is not whether to tax e-commerce but how and to what extent. At the same time, this study will also focus briefly on how taxation on E-Commerce will be of greater importance shortly.
Keywords: E-commerce, E taxation, India, OECD
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