Madhya Pradesh Government : Online Shopping to Cost More With Imposition of 6% Entry Tax

The government of Madhya Pradesh has decided to impose 6 percent tax on online shopping so as to increase the revenue of the state and cover each and everything under the bracket of tax with no exceptions at all.

Madhya Pradesh government is planning to impose 6 percent tax on the online shopping. The tax is going to be imposed on goods we get through the e-commerce websites. All the things we get transported at our door step will now be circled under the 6 % tax scheme.

The tax will be imposed on all the online shipments regardless of the fact whether they are within the country or from abroad. The main agenda is to bring all the tax free things in the market under the tax bracket so as to provide benefit to those who suffer losses because they are selling products under the tax scheme. The government suffered great losses because of the internet based retailers due to which this tax scheme is likely to be imposed on all such retailers like Flipkart, amazon, Snapdeal, eBay, etc.

Taxation of E-commerce (E-com. in short) companies has been in focus for a long time treating them as commercial agent. With E-com growing at a rapid pace in the country state government does not want to lose out on revenue. In most cases, invoices issued for online purchases show taxes levied, but states do not want to take any chances as these companies have complex delivery structures.

The same is followed in many countries around the globe and now Indian government has also taken this under consideration, suitable measures need to be taken so as to entail this effectively.