Kerala government has put a fine of INR 53.63 crore on Flipkart, Jabong and two other e-commerce companies in the crime of doing illegal business in the state.
According to an IndianRetailer report, the fine has been imposed by the intelligence wing of the Commercial Taxes Department for the year 2012-13 and 2013-14.
Flipkart has to pay the major chunk of the fine i.e. INR 47.15 crore, Jabong has to pay INR 3.89 crore, Vector e-commerce (Myntra) to pay INR 2.23 crore and Robemall Apparels (Zovi) INR 36 lakh.
The companies have been penalized in lieu of evading taxes for the past two years and the sales tax department is looking at other retailers too.
This is not the first time when a fine has been imposed on e-commerce companies, Amazon had faced a similar situation in Karnataka when the tax authorities found out that the company was not paying the Value Added Tax (VAT).
Myntra, Jabong, Flipkart and Snapdeal had abandoned its delivery services to Kerala cities in 2014 since the state tax department had put a ban on cash on delivery service.Category Ecommerce Governance