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By
Fibre2Fashion
Published
Jun 30, 2016
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Flipkart worried over TDS clause in GST Bill

By
Fibre2Fashion
Published
Jun 30, 2016

E-commerce major Flipkart is apprehensive about a clause relating to tax collection at source in the Goods and Service Tax (GST) Bill.


Flipkart is apprehensive about a clause relating to tax collection at source in the Goods and Service Tax (GST) Bill. - Flipkart


"We believe that TDS process that has been recommended about holding some tax and paying that on behalf of the seller, that I think is something that will be very difficult for us to implement in practise," Flipkart Executive Chairman Sachin Bansal told reporters in Bangalore after meeting Karnataka Industries Minister R V Deshpande.

Riled by the clause, Flipkart had earlier said that it would prove detrimental to lakhs of small and medium sellers who do business on e-commerce platforms.

This clause would hurt the working capital requirement for these sellers as they work on small margins to provide affordable rates to consumers, the company had said. The clause is not applicable to offline sellers

Bansal described his interaction with Deshpande as a courtesy meeting. "I wanted to tell him about the activities in the internet space, especially in Karnataka as Bengaluru is at the center of the Internet revolution that is happening in India."

"I have made some broad suggestions, broad thoughts were discussed and we have exchanged ideas," he added.

He said he did not discuss Flipkart's tax issues with the state government in today’s meeting.

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