A fine of Rs. 53.63 crores has been imposed by the Kerala Commercial Taxes Department on four online trading companies that include giants like Flipkart and Jabong for supposedly indulging in illegitimate business in the state.
These four online trading firms that were condemned to the penalty are Flipkart that needs to pay a fine of Rs. 47.15 crores, Jabong.com to pay Rs 3.89 crores, Vector e-commerce to pay Rs 2.23 crores and Robemall Apparels to pay Rs 36 lakh.
Previously, the commercial taxes department put a ban on COD (cash on delivery) services of Jabong, Myntra, Flipkart and Snapdeal. Despite the prohibition on COD, the online retailers have continued provide COD services. Although when asked to the officials, they said that the ban is still in place.
The department has made it clear that these four companies are just the beginning, and soon other e-retailers will face the same fate if they don’t start fixing the odd. Once they are found guilty, they will also be fined, said the tax officials.
The department said the reason behind these companies being banned or penalized is that they have skipped paying taxes for too long. They also said that all the transactions made are taxable by law.
Kerala is following the footsteps of Karnataka that banned Amazon India because the tax authorities found out that the company wasn’t paying value added tax (VAT) for transactions. The company was asked to collect VAT from sellers instead. But since Amazon did not pay heed to the warnings issued, it was banned from selling products in the state.
There are discussions going around with the Finance Minister to decide on the taxations all across the country, and the results for the same would come out soon. May the decision be ruled in favor of customers’ benefit.