15.6C
Delhi
Monday, January 18, 2021

Give TDS relief to small sellers on e-commerce platforms: IAMAI

- Advertisement -

Etailers see grooming products, kitchen appliances in high demandNew Delhi, Jan 14 (IANS): The Internet and Mobile Association of India (IAMAI) on Thursday said that its has appealed to the government to reduce TDS on e-commerce platforms to 0.25 per cent from 1 per cent to give much-needed relief to small sellers in the Union Budget 2020-21.

The uniform TDS on e-commerce transactions is creating major challenges for the small sellers who are conducting business via e-commerce platforms.

“Reducing TDS will help achieve the tax trail without creating the unintended cash-flow concerns,” the IAMAI said in a statement.

“While it understands that it was an important move on part of the government for better monitoring and realisation of taxation, it has led to unforeseen consequences hurting SME sellers”.

READ ALSO:  After Amazon and flipkart, Snapdeal is the third biggest ecom in India

IAMAI had earlier shared with the authorities an illustration that suggested for merchants who have a turnover of up to Rs 1.25 crore, 1 per cent TDS under the new provisions would exceed their total tax liability, resulting in an unnecessary refund position.

“Or, in other words, create cash flow and working capital concerns for small businesses,” said the IAMAI which has now appealed to the authorities in its pre-budget memorandums to reduce the rate of TDS.

Given the Covid-related economic slowdown, e-commerce platforms have proven to be a crucial lifeline for small scale and MSME sellers, who do not have the marketing or logistics bandwidth for wider outreach and are now using ecommerce platforms to sell across the country.

READ ALSO:  Paytm refutes report on China’s Ant Group considering stake sale

“Unfortunately, the TDS, over and above the pre-existing TCS under GST, now means that such sellers conducting business over e-commerce platforms have a considerable amount of their total revenues locked up under tax claims,” the association argued.

READ ALSO:  Google Shopping to allow merchants to list products for free

Forcing small businesses into prolonged tax refund claims for release of critical revenues is perhaps unwarranted under the present circumstances, it added.

India Updates
India Updates is an independent news & Information website. Follow us for regular updates on News and Information.

Follow Us On

Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Topics In India

Covid 19 India Updates

Trending News In India

Trending Showbiz

Trending Sports

Latest Trending News In India

Arm-twisting tactics won’t work: Punjab CM again warns Centre

Chandigarh, Jan 18 (IANS) Condemning the NIA notices issued to several farmers and their supporters amid the anti-farm laws agitation, Punjab Chief Minister Amarinder...

‘Vaccine won’t kill you’: AIIMS Director allays fears

New Delhi, Jan 18 (IANS) AIIMS Director Randeep Guleria on Monday allayed apprehensions about the coronavirus vaccines and assured that the side-effects will not...

We will not quarrel, but celebrate R-Day: Farmer leader Rakesh Tikait

Ghazipur, Jan 18 (IANS) The farmers protesting against the new Central farm laws have announced a 'Tractor March' on Republic Day. On Monday, the...

Aus seeks info on deaths in Norway after Pfizer vaccination

Sydney, Jan 18 (IANS) Australian Health Minister Greg Hunt said that the country is seeking urgent information on the deaths of 29 elderly Norwegian...