In response to this proposed norms, the Internet and Mobile Association of India (IAMAI) has now said that it is an additional burden on ecommerce platforms such as Flipkart and Amazon.

In India, most ecommerce platforms follow the marketplace model where they only sell products listed by third-party sellers.

Any form of withholding taxation only creates cash flow irregularities for businesses which in turn locks in the working capital for the small sellers,” IAMAI added.

Highlighting that both TDS and TCS increase the compliance burden for small traders, IAMAI said that all such complications might even force sellers to stop working with online platforms.

Earlier this month, Amazon and Flipkart along with other ecommerce platforms were also demanding the rolling back of the proposed ecommerce TDS on third-party sellers on their platforms. | To read full story, visit https://startuparound.com/read/1581957006.4864576/Will-TDS-Force-Small-Sellers-To-Logout-From-Ecommerce??ref=audio_experience