Several ecommerce companies have likely missed the November 10 deadline to deposit a part of the taxes due from their sellers, now mandatory under the Goods and Services Tax (GST), because of hurdles posed by various state governments. The ecommerce companies would likely become liable to pay interest as well as heavy penalties as a result, tax experts said.
Amazon India has informed its sellers that it was unable to implement tax collection at source (TCS) for October — the peak festival sales period for ecommerce companies this year — in as many as 12 states due to “technical issues”. Experts say the problem relates to several state governments requiring ecommerce companies to have a physical local address to be able to register themselves for depositing taxes deducted from their vendors.
Source: Economic Times