Tuesday, 26 January 2016

Will the Tax problems in Uttar Pradesh spread to other states???

The new tax policies on the products bought online which cost above Rs.5000 in Uttar Pradesh is pushing E-market places like Snapdeal, Flipkart etc. to losses. Uttar Pradesh is a densely populated state with many cities. All this began when the Uttar Pradesh government wanted online buyers buying articles to fill the VAT form and declare the registration number of the delivery vehicle. The orders above Rs.5,000 are not being delivered by the E-marketplaces in this state and it is loss to both buyers and the E-market places.
This scenario has a direct impact on the E-market places. The current solution to this problem is the establishment of warehouses in the state by the E-market places.  The E-market places say that the similar problem exists in Uttarakhand and was earlier faced in Bihar. 
Amazon may have lesser trouble due to this, as they have fulfilment centres all over the country. The E-market places have to plan on the finance side as how the extra taxes laid down by the state governments can be paid and the planning should also be done on the establishment of fulfilment centres. It is better these two things are taken care as early as possible by the E-market places to reduce the losses as the other states may also start to lay the same rules as Uttar Pradesh. 
The aspiring online sellers should also plan about these things when trying to start their own website. Hope these problems are resolved soon so that the E-market places and buyers both can benefit from online selling. The Online sellers selling in E-market places like Amazon, Snapdeal, Flipkart, Shopify, FaceBook, EBay, Etsy Etc. can choose SELLinALL to list/post products as it saves time and keeps the inventory in a organised manner.