Proposed 1% TDS on e-commerce transactions to impact firms, sellers

Experts further said that e-commerce companies already deduct 1 per cent TDS under the Goods and Services Act

The new levy of 1 per cent tax deducted at source (TDS) on e-commerce transactions proposed in the Budget is likely to hit the cash flows as well as the working capital of mega players like Amazon and Flipkart as well as their sellers. E-commerce firms are studying the proposal and would seek clarifications soon.

“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,” said an Amazon spokesperson.

Moreover, Flipkart is looking at the details, particularly how the