The budget proposed reduction in TDS rate on e-commerce operators to 0.1 per cent from 1 per cent now
New Delhi: E-biz players on Tuesday said the proposed reduction in TDS rate on e-commerce operators to 0.1 per cent from 1 per cent now, promises to significantly free up working capital for sellers.
An Amazon spokesperson said the company, on behalf of its sellers, “welcomes” the Government’s decision to reduce the Tax Deducted at Source (TDS) rate for e-commerce operators.
Similar sentiments were echoed by others like Flipkart and Meesho.
“Reducing the TDS rate from 1 per cent to 0.1 per cent will significantly free up working capital for sellers,” Kalyan Krishnamurthy, the CEO of Flipkart Group, said.
Dhiresh Bansal, Chief Financial Officer at Meesho said the government’s forward-thinking measures in the budget, support the equitable development of small businesses.
“Reducing TDS rates on e-commerce operators is a much-needed change which will enhance liquidity. Previously, small businesses had to wait a year to claim their refunds. This change will now lead to improved working capital efficiency, creating more parity between online and offline. We are excited to see the positive impact this will have on the nation’s economic growth,” Bansal said.
Finance Minister Nirmala Sitharaman in the budget for 2024-25 announced a reduction in TDS rate on e-commerce operators to 0.1 per cent from 1 per cent at present.
In a statement, Nasscom said the move would encourage more sellers to participate in the e-commerce activity.
“For payments made by e-commerce platforms to sellers, this will help in unlocking working capital for the sellers on e-commerce and encourage sellers to participate in e-commerce activity,” the apex IT industry body stated.
