Government may issue clarification on e-commerce tax norms

The Department of Industrial Policy and Promotion (DIPP) has received inputs on framing e-commerce guidelines from nearly all states and is drafting a policy that will define the marketplace model to leave no room for misinterpretation, he said. This clarification became critical after Karnataka proposed tax deducted at source (TDS) of 1% as a value added levy on payments made to sellers by e-commerce companies.