Taxation:Major Problem of E-Commerce
by
Devender Lamba
Deptt. of Excise and Taxation,Fatehabad,Haryana,India

After a big bang start in developed nations , e-commerce is picking up speed in developing countries like India. Prospects of e-commerce are very high in the coming days. The new technology has created a new revolution .After industrial revolution this is unique of its kind. Inspite of being a boom for small or big companies and also for the customers e-commerce has created taxation problems. Anyone can buy anything from anywhere in the world . On just few clicks monetory transactions can be made online. This study shows the consequences of e-commerce covering the aspect of taxation. One of the models used in this paper is Monte Carlo simulation model. Since e-com system's behavior changes continuously with time, so continuous simulation model has been used to describe the interactions among the different element of the system. Poisson distribution has also been used in this simulation to find different probabilities. One of the mathematical model namely L.P model is also used to determine the variables optimizing the equation to maximize no. of tax cases and satisfying the constraints in applying the suggested policies.

Date received: October 13, 2001