Ecommerce major Flipkart today expressed concern over a clause relating to tax collection at source in the Goods and Service Tax (GST) Bill.
“We believe that TDS process that has been recommended about holding some tax and paying that on behalf of the seller, that I think is something that will be very difficult for us to implement in practise,” Flipkart Executive Chairman Sachin Bansal told reporters here.
Flipkart had earlier said that the said clause would prove detrimental to lakhs of small and medium sellers who do business on ecommerce platforms.
This clause, which is not applicable to offline sellers, would hurt the working capital requirement for these sellers as they work on small margins to provide affordable rates to consumers, it had said.
Bansal was speaking after meetingIndustries Minister R V Deshpande here.
Calling it a courtesy meeting Bansal said,
To a question, Bansal said Flipkart would continue to invest in Karnataka.
“Absolutely… We have about 5,000 people working here right now, our head count is growing and we will continue to grow over here. We have lot of presence here; we have warehouses in the state. So we will continue to invest.”
“Definitely it has become more external focused, but I am very much involved in the day-today operations as well. I am also looking after mentoring of senior leaders in the company, as well as creating a positive ecosystem around Flipkart and some new partnership that you will hopefully see in the coming days.”
To a question on the overall trend in ecommerce with pull back in investment and challenges lying ahead, Bansal said “overall these are financial cycles that happen.”
“In the whole world I think the internet sector itself is going through a down cycle, but as the positive cycles do not last for ever,the down cycle also do not last for ever, so it will comeback,” he said.