THIRUVANANTHAPURAM: Five e-commerce firms, including Flipkart and Amazon, will soon get registered with the Commercial Taxes Department. The free run of the e-commerce websites, escaping the tax net and the Tax Department’s inaction, has attracted the wrath of the CAG. The latest CAG report pegged the revenue loss in the e-commerce sector as `174.33 crore in the 2012-14 period. According to the CT Department, other firms that will be given registration are AM Marketplaces, Bipha Drug Laboratories and Aditya Birla Online Fashion. “The five e-commerce firms had submitted applications last year. The department was working on a provision for them in K-VATIS, the e-filing system. The software was updated last week and the firms will be given registration shortly,” officials said. “We are getting many enquiries and more sites are expected to submit applications for registration,” they said.
According to the CAG, there were 30 major online dealers in the state who could contribute to the tax revenue. Taxation of e-commerce websites was first proposed in the 2015 budget following which the KVAT Act 2003 was amended. The new section in the Act stipulates all e-commerce websites to file monthly details of goods sold - transported into or outside the state. The firms need not remit any registration fee or security deposit.
Officials said returns filed by the websites would uncover tax evasion by those who do online business.
“Several businesses in the state are conducting online trade. The details shared by e-commerce sites will help us to cross check with the returns filed by these businesses,” officials said.