HYDERABAD: The Telangana government is weighing options to levy value-added tax (VAT) on deliveries by ecommerce firms in the state, potentially setting off a freshtaxation wrangles between a state and the fast-growing sector.
In neighbouring Karnataka, global ecommerce giantAmazon is already locked in a tax dispute with local tax authorities after they slapped notices on some 100-odd sellers on the company's electronic marketplace who had listed its warehouse as an additional place of business, saying their actions were deemed to be in contravention of the state VAT laws. About 25 merchants' licences have since been cancelled.
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