Major Indian online retail platforms are campaigning to change proposals to the new Goods and Services Tax regime due to come in later this year.
Rivals Flipkart, Amazon and Snapdeal all claim that the Tax Collection at Source (TCS —Section 56) clause in the new GST regime, which requires marketplaces to withhold a % of Sellers’ revenues for payment directly to the tax authorities, will hold back the e-commerce industry. They insist it could cost their Sellers Rs 400 Cores in cash flow, and is discriminatory.
TCS will only apply to online sales of taxable supplies.
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