Flipkart Imposed With Rs. 23.51 Crore Fine For Evading Taxes
Flipkart is the king of the e-commerce space in India. In just a few years of its existence, it has made a name for itself as a trustworthy marketplace. The company has a base of more than 26 million registered users. But it found itself in an unfavorable situation when the Income Tax department slammed a penalty of Rs. 23.51 crore.
The Income Tax (IT) department from Noida and Ghaziabad carried out raids at the Dasna based warehouse of the company in Ghaziabad. The books of the firm were seized by the authorities, and several irregularities were observed. According to the officials the company collected taxes from the consumers but didn’t deposit it with the tax department.
The officials of the department also said that the trading partners listed by the company were also bogus firms. These are some serious allegations against Flipkart and all it said in return is that it would extend full support to the authorities.
E-commerce companies have worked under the government radar for a while but recently there has been an increased focus on their workings. E-commerce markets are also opposed by the conventional brick and mortar shop owners as they provide heavy discounts that discourage customers from buying the products from shops, especially in the electronics arena. We’ll be looking into this story as more details arrive; keep checking this space for more.
