Amit Agarwal, managing director of Amazon India, and few other company officials on Thursday called on Karnataka CM Siddaramaiah in a bid to sort out the commercial tax dispute that has been troubling the e-commerce major for the past 10 months.
State tax authorities had issued notices in August last year to some sellers on Amazon’s e-marketplace stating that they had violated the state law on value-added tax and, subsequently, the government had cancelled the licences of some of the sellers.
ISN Prasad, principal secretary to government, finance, said, “No decision (on the tax issue) has been taken in today’s meeting.”
Amazon has put on hold future investments in its warehouse operations. Currently, a status quo situation prevails on the issue which began last year when Karnataka’s commercial taxes department asked Amazon to pay VAT on behalf of sellers as it was acting as a commission agent, an interpretation the ecommerce company has disputed.
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