• By ADMIN
• Posted 08 Feb, 2020
• 1999
• 0

TDS by e-Commerce Operator

CA.S.Selvakumar

e-Commerce operator in India is now required to deduct tax at source when they make payments to the sellers for supply of goods and services through the facility provided by them. In most of the cases, the e-Commerce operater used to collect money from buyer and pays back to the seller after deducting facility charges / commission etc. 

The rate of TDS would be 1%, when the supplier failed to provide PAN/Aadhaar then 5%.

But no such deduction is required when the aggregate amount payble less than Rs.5 lakhs.

One of the important aspect to be noted is that even if the payment for supply of goods and services received directly by the supplier, the said sum is subject to TDS by the e-Commerce Operator.