Why is Telangana State looking to amend their online trading laws?

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It appears that Telangana state is mulling changes in online trading laws.

Apparently, the state had fallen short of tax collection target of Rs 27,777 crore during 2014-15 in spite of netting about Rs 6,184 crore more taxes than the previous year.

Commercial taxes minister Talasani Srinivas Yadav is blaming it on the frequent reduction in the prices of petrol and diesel, and online trading.

To compensate for the short of tax collection target, the state is contemplating to bring online sales into tax structure, knowing the fact that more and more people are purchasing goods online. The taxes collected from the online sales will be beneficial to the state.

What’s more, Yadav is hoping that commercial taxes will increase due to the expansion of businesses in Hyderabad. He is confident that several educational and business houses will be there to stay and more new business houses will come up in the city.

And now the government is considering the idea of designing a special software that will allow them to collect the state’s rightful share of entertainment tax from the sale of cinema tickets as the complete information on the online sale of tickets hadn’t been accessible to them before.

The special software will also aid the monitoring cell, which will be set up to oversee luxury tax collection from hotels, corporate hospitals and others.

Even online traders doing “zero business” won’t be exempted. With the help of the special software and monitoring cell, raids will be conducted on such traders.

Clearly, this is a good move for the state. As for the businesses that will be affected by this change, better make sure that you are paying the right amount of taxes.

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