Amazon, Flipkart may reach out to govt for clarification on 1% TDS levy

The government on Saturday proposed a new levy of 1 per cent TDS (tax deducted at source) on e-commerce transactions, a move that could increase burden on sellers on such platforms

Amazon India and Flipkart are studying the Budget proposal on levy of one per cent TDS, and will reach out to the government for clarifications.

"We are studying the details, and will reach out to the government for clarifications. We hope the tax regime is simple and uniform so that millions of small and medium businesses can go online, digitise their operations and continue to contribute to growing the economy," an Amazon India spokesperson said in response to an e-mailed query.

Flipkart also said it was going through the proposal.

"We are studying the details, particularly how it impacts the MSMEs and Sellers