Amazon in India suffered tax regulatory storage center may be forced to close
NetEase Francisco September 15th message, according to foreign media reports, Amazon is in the south of India Karnataka (Karnataka) government supervision of trouble, the state government tax agency has ordered third India businessmen to stop Amazon website stored in Amazon’s warehouse goods. To this end, Amazon said it is located in the state of Bangalore (Bangalore) storage center or will be forced to close.
The dispute between the
and the government of Karnataka, involving third party merchants selling goods and directly from Amazon’s warehouse in Bangalore shall send goods directly to consumers how much taxes paid by Amazon, especially the Internet retailers and retailers as to whether or not to the state government to pay sales tax. Amazon said it is working with the Karnataka government to solve this problem, but warned that if the two sides cannot reach an agreement, it may be forced to close the Bangalore distribution warehouses, and will delay the investment in other states. Amazon said in a statement, we know that this reflects the pace of legal norms have not yet kept up with the nascent online business model." The company also said, "we expect to have to solve this problem, we have to avoid closing in Karnataka local storage business, and retain more investment for the state."
Amazon and local competitors Flipkart and Snapdeal have been expanding their business, especially their storage infrastructure to adapt to the growing expansion of the online shopping market in India. However, analysts believe that these companies from the India tax authorities may increase the pressure. "I am sure that the tax will become a headache for all of these e-commerce companies," New Delhi’s retail consulting firm Technopak Advisors chairman Singer (Arvind Singhal) said, "the government of India, both the central government and the state governments have not really studied e-commerce, although e-commerce is the future development trend."
in India, consumers who shop in traditional physical stores need to pay sales tax to the local government, the amount of tax varies with the state and the type of goods. However, in reality, many individual stores do not open shopping invoices to help consumers avoid the tax should be paid. Singer Hal said in India on whether e-commerce companies are regarded as the legal definition of the retailer is not clear, while Amazon claims that e-commerce companies are only service providers. "The distribution center is located in some parts of the country, but the real deal is happening elsewhere," Singer said. "Therefore, the subject of local taxes is a challenge."
e-commerce companies operating in India are rapidly expanding their business, in order to adapt to the rapid growth of online shopping in India trend, >