Case summary:
According to marketplace fairness act 2013 state should collect online sales tax. Customers mostly purchase products through online thinking that they may not have to pay sales tax, which lowers the prices of the products. According to the Supreme Court role in 1992 the respective state as to pay sales taxes where it has been physical present.
Company A opposed initiatives against collecting sales tax that considered for competitive advantage. Company B & M tells claiming from online sellers has an unfair price benefits. Early the Company A was against the legislation but now it started supporting.
To discuss: The reason behind Company A for the changes in its position regarding online sales taxes and reason for supporting.
Introduction:
Sales taxes is the one which company collects the tax from the customer when the sale is made on cash or on account, and periodically deposits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are computed as percentage of the sales price.
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