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CMA Intermediate · Direct and Indirect Taxation · Charge of Tax including Reverse Charge

Under section 9(5) of the CGST Act, 2017, where an electronic commerce operator has no physical presence in the taxable territory but has a representative there, who is liable to pay the tax?

The person representing the electronic commerce operator in the taxable territory is liable. The first proviso to section 9(5) places the tax liability on such a representative where the operator has no physical presence there, and the appointment duty arises only when no representative exists.

  1. AThe person representing the electronic commerce operator in the taxable territoryCorrect
  2. BThe recipient of the services on reverse charge
  3. CThe Central Government
  4. DThe supplier registered on the platform

Explanation

The first proviso to section 9(5) says that where an ECO lacks physical presence in the taxable territory, any person representing it for any purpose in that territory is liable to pay tax. Only if there is also no representative must the ECO appoint a person, under the second proviso.

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