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Telangana government to impose tax on e-commerce
Posted On: 17-11-2015 00:00:00 15

The Telengana government is working on a proposal which will allow it to impose 1% tax on payments by buyers to sellers on e-commerce sites. This is similar to models being worked out in states such as Karnataka, Kerala and Maharashtra.

The move has alarmed the e-commerce industry as e-commerce companies chose to set up large fulfilment centers in Telangana owing to the government's industry-friendly stance. Both Flipkart and Amazon moved their fulfilment centers (warehouses) from Bengaluru to Hyderabad after the Karnataka government proposed to levy 1% cent tax on an e-commerce transaction in the form of VAT.

 
 
 

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