E-commerce major Flipkarttoday expressed concern over a clause relating to taxcollection at source in the Goods andService Tax (GST) Bill.
"We believe that TDS process that has beenrecommended about holding some tax and paying that onbehalf of the seller, that I think is something that will bevery difficult for us to implement in practise," FlipkartExecutive 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 dobusiness on e-commerce platforms.
This clause, which is not applicable to offlinesellers, would hurt the working capital requirement for these sellers as they work on small margins to provide affordablerates to consumers, it had said.
Bansal was speaking after meetingIndustries Minister R V Deshpande here.
Calling it a courtesy meeting Bansal said, "I wanted totell him about the activities in the internet space, especially in Karnataka as Bengaluru is at the centerof the Internet revolution that is happening in India."
"I have made some broad suggestions, broad thoughtswere discussed and we have exchanged ideas," he added.
He also clarified that Flipkart's tax issues with thestate government were not discussed in the meeting today.
To a question, Bansal said Flipkart would continue to invest in Karnataka.
"Absolutely... We have about 5,000 peopleworking 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 inthe state. So we will continue to invest."
On his lessons as a Chairman, Bansal said:"Definitely it has become more external focused, but I am verymuch involved in the day-today operations as well."
"I am alsolooking after mentoring of senior leaders in the company, as well as creating a positive ecosystem around Flipkart andsome new partnership that you will hopefully see in the comingdays."
He said the key partnerships would be in seller as well as investor front.
To a question on the overall trend in e-commerce with pull back in investment and challenges lying ahead, Bansal said "overall these are financial cycles that happen."
"In thewhole world I think the internet sector itself is going through adown 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.
