bgbrtbtrbnrtbnrtbnrbnrtbnrbnrtbnrtbnThe Internet Taxation
            
             The rapid growth of electronic commerce is likely to revolutionize home and work life. The economics and finance are the biggest field to be affected by this. The biggest impact of this wave of change in business practices will definetly be on tax system. The present system on businesses requires them to pay taxes if they sell their merchandise from their shops or stores.
            
             But the talking point is whether the online stores selling everything from hardware merchandise to trivial stuff is taxed or not. This issue is already being debated fiercely in some states in the US. In the absence of any tax on online merchandising, stores and corporations are reaping huge profits out of this way of trade. Critics of such an Internet Tax in the US argue that this tax, if implemented, will hamper the growth of Internet, making online stores comparable to physical stores at the cost level to a buyer. This will be detrimental to the health of Internet commerce and Internet itself. Since Internet is very much in its infancy it wil be better to allow the e-business to settle first and then taxing should be done.
            
             Rules of Internet taxation
            
             Basically, there are three areas of contention: Internet access through an Internet service provider; sales of goods over the Internet through the use of credit cards; and information and software downloaded from the Internet.
            
             Some states, such as Arizona and Connecticut, are aggressively charging tax on basic Internet access and e-mail services. Those charges are subject to sales and use tax in some states and to telecommunications taxes in others. Other states consider Internet access fees to be a service, which is generally tax-exempt.
            
             As far as sales of goods, the Internet serves as an electronic order taking service similar to mail order, with goods delivered through traditional channels such as the Postal Service, Parcel Service, etc. Taxability on ...