Foreign e-commerce companies will have to pay 2 percent extra tax, know how this decision will affect your pocket

new Delhi. Finance Minister Nirmala Sitharaman presented the Budget 2021-22 (Budget 2021) in Parliament on 1 February 2021. According to the provisions of the budget, foreign e-commerce companies will have to pay 2% additional tax on the sale of goods or services. There has been confusion over the provision of the budget, whether foreign companies working in India, who pay tax here, will also be taxed.

The central government has made it clear that such rules will be applicable to such foreign e-commerce companies, which do not pay any tax here. For example, if Amazon sells goods to a person in India through its portal of America, then it will have to pay 2 percent excise levy here. At the same time, if there is a sale in India through Amazon.in, then it will not have to pay the excise levy.

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There is already a provision for excise levy

Tax expert Vikas Panjiar said that there is already a provision for Equalisation Levy. This levy is a part of income tax, which companies have to pay. The government has brought clarity in these things through the budget. Foreign e-commerce companies like Alibaba will have to pay 2% extra tax on the sale of goods or services. This rule will not apply to e-commerce companies operating from India. Therefore, there will be no significant impact on ordinary customers.

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CAIT welcomed the decision
The Confederation of All India Traders, an organization of traders, has welcomed the budget proposal to impose a 2% extra tax on foreign e-commerce companies.

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