“In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.” (Alexis de Tocqueville)
Ecommerce companies, under a survey, was found that these companies were running under debts hence a system should be introduced by the government in order to support the existing and contemporary ecommerce entrepreneurs and organizations.
Modification of technology
Technology has aided man in every white collar. Hence, today technology has changed the way we think and we toil. With the evolution of smartphone and intimate evolution of easy internet access, the shopping and trade has also witnessed massive change. Accordingly, in India, the shopping needs and business has augmented quadruple times than the existing trade and ecommerce business since 2009. And this business growth is still pacing at an enormous speed.
Government
The government of India seemed to work in a synchronized manner with the ecommerce department as the government has legalized a law that companies retailing and dealing with mono-branding can initiate their incipient existence online as well. This growth has definitely given rise to certain issues which should be handled hastily. One of these issues is tax legalization issue.
AMP
Accordingly, the government should legalize the marketing agenda initiated by the ecommerce industries as they spent heavily on Advertisement, Marketing and Promotional which is also known as AMP. Thus, this expenditure should be legalized and authorized by the government for the enhancing the productivity and growth of ecommerce business.
Funding
Without funding, no company or business can prosper. For eCommerce, funding demand is raised from time to time depending upon the capacity of the ecommerce business and industry. In doing so, sometimes entrepreneurs had to face which results into a slumping state of the business which brings in heavy tax fluctuations. This issue should also be dealt with proper care and thorough invigilation.
Ecommerce companies
Under a survey over ecommerce companies, majorly most of them are running under an unprivileged and deprived conditions and the withholding tax is refunded back most of the times. The fight is to keep the legitimate withholding tax attributes away from the sight of the vendors and this is what should be looked by the government.
“Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” (Ronald Reagan)
Contact us for further information.
