Yes this is a hot discussion topic among E-retailers. TCS or tax collection at source will make transactions more complicated.
For example, Flipkart will deduct tax and pay to their online sellers. In case of goods returned by buyers, again accounting and reversal of TCS will be complicated.
We have to wait and watch before commenting further on this, but as of now things look little complicated.
Impact on sellers will be dual, first already they have to be careful about their working capital management and secondly TCS will further have impact on capital management.
Now returns needs to be accurately accounted to get back the TCS portion otherwise it will negatively impact their operating margins.
chatCommentsCompared to current position, have you done any analysis as to quantum of hit on working capital management. - Pulkit Sharma