Digital companies including Amazon, Facebook seek clarity on ecommerce transactions tax

Mumbai: Top digital companies including Amazon, Flipkart, Bookmyshow and Facebook have sought clarity from the government on how a 1% tax on ecommerce transactions announced in the previous budget would be levied.

The first instalment of the new tax is due in October and there is some ambiguity over how it is to be calculated, experts said.

Companies want the government to come out with precise rules for this tax, which they are to deduct before payments to vendors, and how certain transactions should be treated.