Government hits on tax evasion by sellers on e-commerce

The Maharashtra state government is trying to reduce its fiscal deficit by plugging gaps in tax evasion. The government burdened with drought relief in several districts is watching out new sources of revenue like e-commerce websites.
The 2016-17 financial budget by the government is blocking loopholes for avoiding tax and has made registration easier. The service tax system is computerized to have a keen check on payments. Service tax is the major revenue for government (30.08 percent). The state finance minister has provide with an amnesty to pay due taxes. The amnesty period is expected to bring in 500 crore revenue. The defaulter should pay 25 percent of disputed interest and they will be exempted from penalties.
The government will obtain sales-purchase transactions from e-commerce portals; on failing to provide the information the portals will be penalized.
This will get hold of the sellers who evade taxes by showing lesser income. The sellers who have more than 10 lakh turn over are registered with the government. This will give insight whether these sellers pay the dues properly. The move will also get hold of merchants who file lower incomes to evade taxes. The government is adopting to latest techniques to plug-in the gap in revenue deficit

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