Lower TCS Benefits Sellers on Flipkart, MakeMyTrip, Amazon

The reduction in tax collected at source (TCS) fees from 1% to 0.5% for suppliers selling their goods and services on platforms such as Amazon, Flipkart, and MakeMy Trip will provide these businesses more working capital. However, experts suggest this will essentially benefit businesses that are not very profitable or those still in their infancy. The intention behind levying TCS is to trail the flow of money with the goal of increasing the tax base. Unprofitable businesses and startups will have more liquid assets at their disposal. Some professionals argue further reductions in TCS would be beneficial, potentially even to rates as low as 0.1%.

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