Hyderabad: The governments of Telangana State and Andhra Pradesh plan to amend the Value Added Tax Act to bring the transactions of e-commerce firms under the tax net.

“We have written to the government about the ambiguity in indirect taxing of e-commerce firms, which is not covered in the current VAT law,” said V. Anil Kumar, commissioner of the state commercial taxes department.

Online retailers offer a platform that retailers and buyers can use to make transactions. E-commerce firms may also offer logistics and warehousing facilities to the sellers.

Some dealers are indicating warehouses of e-commerce firms as their additional place of business or a branch. Officials say this is to avoid certain taxes.