Kerala has Slapped a fine of Rs 54 Crore on e-commerce companies.

In a stand of between state authorites and e-commerce companies Kerala’s commercial taxes department has slapped a fine on Flipkart, Jabong, Vector E-commerce Pvt Ltd (which holds a stake in Myntra) and Robemall Apparels Pvt Ltd (which operates zovi.com). The fine, Rs 54 crore overall, has been levied for evasion of sales tax in 2012-13 and 2013-14.

At Rs 47.15 crore, the fine on FlipKart is the highest, followed by Rs 3.89 crore on Jabong, Rs 2.23 crore on Vector E-commerce and Rs 36 lakh for Robemall Apparels.

Reportedly, Kerala‘stax authorities nare also reviewing other e-commerce companies for similar discrepancies, and might fine more defaulters. In line with the issues raised by state authorities, the tax officials in Kerala have now said though Online+Retailers don’t have physical showrooms in the state, they are selling products to locals and, therefore, have to pay regional taxes, according to agency reports.

Src:- http://www.business-standard.com/article/economy-policy/now-kerala-tightens-tax-noose-around-e-tailers-115012400754_1.html

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