Why Flipkart and Amazon want Clarification on Budget 2020 ?

by Aditi

After passing the budget, there is so much confusion about the tax are coming in the minds of everyone.  Even Amazon India and Flipkart are reaching out to the government for clarification on the budget.

Flipkart and Amazon are studying the budget proposal on levy of one percent TDS and seeking for the government’s clarification on the budget.

An Amazon India spokesperson said in a response to an e-mailed query, “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, digitize their operations and continue to contribute to growing the economy.”

And Flipkart said that it was also going through the proposal. And said, “ We are studying the details, particularly how it impacts the MSMEs and Seller marketplace platform. We will discuss further with our seller partners, and engage with the government and other stakeholders in due course.”

On Saturday, the government proposed a new levy of 1 percent TDS while doing e-commerce transactions, this could increase the burden on sellers on these platforms. ( Source- Gadgetnow)

According to the Budget 2020-21 documents, “ In order to widen and deepen the tax net by bringing participants of e-commerce (sellers) within the tax net, it is  proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of one percent.”

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This Amendment in the Budget will be in effect from April 1, 2020.

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