Ecommerce companies seek more time for 1% TDS levy

New Delhi: E-commerce companies have sought more time to implement a government proposal to levy a new tax, although they have, in principle, agreed to its imposition.

The ecommerce entities, including Amazon.com and Walmart-owned homegrown etailer Flipkart, have said they need time to upgrade IT systems in order to enable them to collect the 1% tax deduction at source (TDS) from sellers, a senior government official said.

“They’ve made representations, they’re fine with the tax deduction plan, but they want the date to be at a later time…They want to upgrade their IT system, which will take time,” the official said asking not to be named since the discussions were ongoing.