Breaking News

You are here » Indian-Commodity  :  Economy  :  TCS provision relaxation under GST to boost e-commerce: FICCI

28-Jun2017

TCS provision relaxation under GST to boost e-commerce: FICCI

Appreciating the government's decision to defer the enforcement of Tax Collection at Source (TCS) provision under the Goods and Services Tax (GST) regime, the Federation of Indian Chambers of Commerce and Industry (FICCI) has said that the decision will boost e-commerce. The industry body further noted deferment of TCS as a welcome step, saying that the immediate enforcement of TCS under GST would have slowed down the growth of e-commerce with consequential negative impact on economic growth, job creation, and infrastructure investments and possibly tax collections itself.

The industry body said that TCS would have a direct impact on the sellers of the marketplace, who are generally small in nature with a turnover in the range of Rs 50 lakh to Rs 10 crore per annum. Besides, it said that TCS could have disrupted the cash flow, thereby disrupting the level playing field between online selling and offline selling, and discouraged sellers particularly SMEs from selling online. FICCI further expressed need of right policy frameworks and guidelines for the sector in order to make it more productive.

The government postponed the Tax Deducted at Source (TDS) and TCS provisions for the time being after the feedback received from trade and industry. Besides, persons supplying goods or services through an electronic commerce operator and liable to collect tax at source will not be required to register immediately until the TCS provision is brought into force.  The decision was taken to provide more time for persons liable to deduct tax at source, e-commerce companies and their suppliers to prepare for the rollout of the forthcoming tax regime.


Related News

View all news

CPI inflation hits 6-month high of 2.92% in April

India's retail inflation based on Consumer Price Index (CPI) continued northward journey for third straight month and inched up to a 6-month high of 2.92% in April 2019 due to a spike in food prices, including......

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural......

Banks take 57% haircut in 94 cases resolved in FY19: ASSOCHAM-CRISIL study

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL stated that banks have taken a huge 57% haircut in the 94......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......