(a) whether the Union Government have invited public comments on the
recommendations made by the Committee constituted to suggest changes in the
Income Tax Act, 1961 so as to tax e-commerce companies;
(b) if so, whether the Union Government have received any comments from
public;
(c) if so, whether the Government have examined the said Committee
report alongwith the public comments; and
(d) if so, the outcome thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS ( SHRI GINGEE N. RAMACHANDRAN)
(a): Yes, Sir.
(b): Yes, Sir.
(c) & (d): Yes, Sir. The recommendations of the Committee cover
various aspects of e-commerce including characterization of incomes for
tax purpose. The taxation provisions cover e-commerce transactions taking place
at the global level and accordingly, any decision taken by the Government
has to be compatible with the international practice on taxation of
e-commerce and in tune with the international developments taking place
from time to time. The report of the Indian Committee is being discussed
by the Tax Advisory Group of the OECD. The representative from India was
also invited to the said discussion. OECD is in the process of finalizing
guidelines on the taxation of electronic commerce, and these will have a
bearing on all the developed and developing countries dealing with
e-commerce. There is also some attempt to find out a global consensus,
if possible, in this regard.