Published
Nov 25, 2019
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CAIT requests tax avoidance probe into Flipkart and Amazon

Published
Nov 25, 2019

The Confederation of All India Traders has asked the Minister of Finance Nirmala Sitharaman to launch a high level investigation into foreign-owned e-commerce giants Amazon and Flipkart for allegedly avoiding tax.

CAIT has accused Flipkart and Amazon of tax avoidance - CAIT- MAHA- Facebook


As its pan-India protests against US-owned Flipkart and Amazon continue, CAIT has requested a full-scale investigation into the online businesses’ tax liability, the Press Trust of India reported. The traders’ body wrote to the Minister of Finance on November 24 and requested it investigate a number of businesses, including Amazon and Flipkart, for allegedly avoiding pending tax liability.

"Since FDI [foreign direct investment] is governed by the FEMA [Foreign Exchange Management Act] and Reserve Bank of India, it is demanded that an another enquiry may also be initiated on pattern of receivable funding and its disbursement," CAIT said. 

CAIT has already accused both Flipkart and Amazon of predatory pricing by offering large discounts online. The organisation believes that this is negatively affecting scores of Indian businesses which are unable to compete with these low prices. 

The traders’ organisation has told the government that such discounting also harms its Goods and Services Tax revenue. "In this way instead of charging value on actual price they are charging GST on much lowered price and hence causing huge GST revenue loss to both Central and state Government," said CAIT.
 

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