As part of the legal and ethical issues about e-commerce, should taxes be set based upon the state where the company selling the product is located, or the state where the person buying the product is located?
Please explain why you made your choice.
The tax should be based upon the state where the person buying the product is located as the manufacturing company has also to pay the tax of the state where the product is being sold. If the company will not charge the tax as per the state then what will they pay to the Government? That is the reason the tax is levied as per the the state. For eg- The tax on the product in the hilly area are much more than the plains due to which the rate of the product is high in those area.
So the tax should be based on the product, where the product is sold and the person are buying it.
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