recently, the online retailer Flipkart, Snapdeal and Amazon agreed on the goods and services tax bill GST (The Good and Services Tax) from the source of Taxation (TCS: tax collection at source) terms expressed concern, that the terms may cause the seller funds locked, interfere with the online sales of their. This is also the three leading enterprises in the field of electricity providers gathered for the first time to express their concerns about the industry. One against each other in the social media platforms such as Twitter and the end of the line to blame each other, criticized the normal.
GST bill in August last year approved by the upper house of the India Parliament a controversial constitutional amendment to conduct a thorough reform of the country’s complex tax system. According to the bill, India existing chaos state and international sales tax will be unified goods and services tax (GST) replaced. Troubled foreign investors have finally been resolved, India has entered the era of national unified tax system.
industry insiders have stressed that the GST act is one of the most forward-looking tax bill, they also believe that the bill will have a transformative impact on the industry. But at the same time, we must also see that the terms of the TCS will cause about 4 billion rupees a year to be locked up, which is not conducive to the company’s online sales. At the same time, it will lead to 180 thousand jobs, a serious obstacle to the growth and investment in the field.
in accordance with the terms of the TCS, in the field of electronic commerce, the seller must deduct a portion of the amount of money on its platform and handed over to the government. "We believe we have a significant impact on the entire ecosystem," said Flipart co-founder Sachin Bansal in an interview with the India Federation of industry and Commerce in New Delhi…… There are thousands of online sellers, many of whom are entrepreneurs, and some are offline retailers…… We have made great efforts to create the ecosystem and overcome many difficulties. We expect that in accordance with the terms of the TCS, at the current scale, the annual 4 billion rupees will be locked in this ecosystem, the seller is unable to obtain this part of the funds, which will limit their operating funds, will eventually let those who want to and cooperation platform for online transactions, the seller beat a retreat."
India business leader Amit Agarwal said: "we are super scale investment, among them a lot of money for creating the infrastructure and the ecological system, to provide training and education services for sellers, allowing them to join the online business, attract more consumers into our market…… In the past few years has been such an investment model…… With the development of the whole ecosystem, many other industries will benefit from it." Agarwal added that the TCS clause will be