The number of people selling goods on social media like Facebook or Instagram is continuously increasing. These brands and people are also earning a lot of profits. If we talk about taxes, many of these people are neither paying taxes.
Even if they are giving, it is very less. Income Tax has identified such people. The department has also issued a notice of tax evasion of Rs 10 thousand crores. Currently, the IT department has sent 45 notices to pan India brands. Many notices are yet to be sent.
The IT department and the government have given clear signals that tax evasion will not be tolerated under any circumstances. For some time now, cases of tax evasion have been detected and strict action has been taken. Due to which the government is also increasing tax collection. Let us also tell you what is the whole matter after all?
Department caught tax evasion of Rs 10000 crore
According to the report of ET, the IT department along with the e-commerce companies running in the country are keeping a close watch on the sellers of social media goods. The department has busted tax evasion of about Rs 10 thousand crores. This tax evasion was being done for about 3 years. 45 notices have been sent by the department. These notices have been sent between the last week of October and 15th November. According to officials, this is just the beginning. Notices are yet to be sent to many people.
Was selling this stuff on social media
According to the ET report, officials said that notices have been sent or are to be sent to those people. None of them is a big e-commerce company. The department has sent 45 notices, out of which 17 notices have been sent to those who sell clothes. 11 notices have been sent to jewelery sellers. 6 notices have been sent to those who sell shoes and bags. Notice has been issued to 5 sellers of local fashion products.
4 notices have been sent to home decor and furnishing people. The remaining notices have been issued to those e-tailers who sell gift items. According to the IT Department, this list also includes the names of some retail sellers who take the help of social media to reach customers. According to the department, there are many sellers who are sending their products to foreign countries also.
Increase after the pandemic
There is a large population in the country. Accordingly, there is also a number of people who do not use social media platforms in the country. If we talk about Instagram, it has about 23 crore users in the country, which is the highest in the world. Whereas the number of Facebook users is also more than 31.40 crores. After the Covid pandemic, the trend of selling goods on these social media platforms increased significantly. The turnover of 45 companies using social media in their business is said to be much better.
Not even 2% income shown
Giving information, the officials said in the ET report that many shopkeepers are not reporting even 2 percent of their earnings to the IT department. This came to light when a Mumbai based e-tailer sponsored a fashion show. According to the IT department, he has a small shop and warehouse. Were selling goods through social media platform Instagram. Solana had a turnover of Rs 110 crore. At the time of filing returns, the e-tailer declared its earnings to be only Rs 2 crore.
