26 September 2023
Our client is selling the goods through ecommerce operator i.e. AMAZON and the Amazon collects the payment on our behalf and send the payment to us after deducting misc. charges like Easy Weight Handling fee/Listing Fee/Fixed closing fee/Sale of space for advertisement etc. alongwith Amazon also Deduct TDS us 194 O . Now our query is that whether our client is also required to deduct TDS under other provisions on Misc Charges/Expenses etc. as above mentioned deducted by Amazon. Our client has not deducted the TDS. Whether any certificate of Non deduction of TDS is required from Amazon. Pl guide .
26 September 2023
BUT THESE EXPENSES TO B ACCOUNTED IN OUR BOOKS. SECONDLY READING SEC 194O THAT WHEN TDS IS DEDUCTED ON THE GROSS PROCEEDS BY ECOMMERCE ALL OTHER TDS PROVISIONS ARE NULL IN RELATION TO THAT TRASANTION OF SALES EXCEPT WHEN OTHER CHARGES LIKE ADVERTISEMENT ETC OTHER THAN SALE TRANSACTIONS THEN TDS IS REQUIRED TO B DEDUCTED BY SELLER. PL EXPLAIN PARA NO 3 BELOW SEC 194 O AS PER ITAX ACT IS REPRODUCED BELOW:-
[Payment of certain sums by e-commerce operator to e-commerce participant. 194-O. (1) Notwithstanding anything to the contrary contained in any of the provisions of Part B of thisChapter, where sale of goods or provision of services of an e-commerce participant is facilitated by an e-commerce operator through its digital or electronic facility or platform (by whatever name called), suche-commerce operator shall, at the time of credit of amount of sale or services or both to the account of ane-commerce participant or at the time of payment thereof to such e-commerce participant by any mode,whichever is earlier, deduct income-tax at the rate of one per cent of the gross amount of such sales orservices or both. Explanation .—For the purposes of this sub-section, any payment made by a purchaser of goods orrecipient of services directly to an e-commerce participant for the sale of goods or provision of services orboth, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e-commerce operator to the e-commerce participant and shall be included in the gross amount of such saleor services for the purpose of deduction of income-tax under this sub-section. (2) No deduction under sub-section (1) shall be made from any sum credited or paid or likely to becredited or paid during the previous year to the account of an e-commerce participant, being anindividual or Hindu undivided family, where the gross amount of such sale or services or both during theprevious year does not exceed five lakh rupees and such e-commerce participant has furnished hisPermanent Account Number or Aadhaar number to the e-commerce operator. (3) Notwithstanding anything contained in Part B of this Chapter, a transaction in respect of which taxhas been deducted by the e-commerce operator under sub-section (1), or which is not liable to deductionunder sub-section (2), shall not be liable to tax deduction at source under any other provision of thisChapter: Provided that the provisions of this sub-section shall not apply to any amount or aggregate of amountsreceived or receivable by an e-commerce operator for hosting advertisements or providing any otherservices which are not in connection with the sale or services referred to in sub-section (1). (4) If any difficulty arises in giving effect to the provisions of this section, the Board may, with theapproval of the Central Government, issue guidelines for the purpose of removing the difficulty. (5) Every guideline issued by the Board under sub-section (4) shall be laid before each House ofParliament, and shall be binding on the income-tax authorities and on the e-commerce operator. (6) For the purposes of this section, e-commerce operator shall be deemed to be the person responsiblefor paying to e-commerce participant.
26 September 2023
if tds s 194 o has been deducted by amazon on gross amount including commission of Amazon then whether we need to deduct tds us 194h i.e commision paid to amazon. Pl guide
27 September 2023
pl refer para 3 above. When TDs deducted for the transaction us 194o by the Ecommerce operator i.e Amazon , no other Tds provision apply on same transaction except Other than Advertisement or other services not related to with the transactions on which TDS has been deducted us 194o. Means sec 194o overides all other provisions of Tds section. i.e 194. NO double TDs to b deducted.
Also pl explain the Para 3 as above statement in detail. What transactions r given in Itax 194O notification for not deducting the TDS. Pl guide.
27 September 2023
194o TDS deducted on your Turnover it's your income. Commission income is of Amazon for this TDS to be deducted. Check with other suppliers to Amazon.
30 March 2024
Dear Pawan, I know it is late reply to your query. The TDS u/s 194-O is related to the commission charged by the E-comm agency for sales. There is no mention about the advertising space in 194-O. Since those are charged extra in your invoices, hence TDS u/s 194C would be applicable. Other incidental charges are during the course of normal sale, and 194-O is taking care of it as the 1% TDS is on gross sale value.
I am keeping the query as open to have some more experts responses.
30 March 2024
Dear Pawan, I know it is late reply to your query. The TDS u/s 194-O is related to the commission charged by the E-comm agency for sales. There is no mention about the advertising space in 194-O. Since those are charged extra in your invoices, hence TDS u/s 194C would be applicable. Other incidental charges are during the course of normal sale, and 194-O is taking care of it as the 1% TDS is on gross sale value.
I am keeping the query as open to have some more experts responses.
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