Amazon India and Flipkart are studying the budget proposal on the levy of one per cent TDS, and may reach out to the government for clarifications.

“We are studying the details, and will reach out to the government for clarifications. We hope the tax regime is simple and uniform so that millions of small and medium businesses can go online, digitise their operations and continue to contribute to growing the economy,” an Amazon India spokesperson said in response to an e-mailed query.

Flipkart also said it was going through the proposal.

“We are studying the details, particularly how it impacts the MSMEs and sellers on our marketplace platform. We will discuss further with our seller partners, and engage with government and other stakeholders in due course,” Flipkart said in its response.

The government on Saturday proposed a new levy of 1 per cent TDS (tax deducted at source) on e-commerce transactions, a move that could increase burden on sellers on such platforms.

“To widen and deepen the tax net by bringing participants of e-commerce (sellers) within the tax net, it is proposed to insert a new section 194-O in the Act so as to provide for a new levy of TDS at the rate of one per cent,” read the budget documents.