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.