Nature Of Business For Online Advertisement Platform

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This discussion explores whether an online advertisement platform, which distributes coupons and discount cards for other businesses, should be classified as an e-commerce operator. The core question is whether such a business model, acting as an intermediary collecting fees and paying retailers, is liable for TDS under Section 194-O and requires GST registration. The consensus leans towards classifying it as an advertising agency rather than an e-commerce operator, as the platform itself isn't selling goods but providing promotional services.

CA jignesh daiya

CA jignesh daiya

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13 April 2021 Dear Sir

Whether Online Advertisement platform Providing Advertisement service For Promoting the goods and services of others by distributing coupons; Promoting the goods and services of others through discount card programs Will Be Cover as Ecommerce Operator ? And Liable for Tds under Sec.194o?

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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14 April 2021 It will not fall under E commerce as you yourself providing advertisement service to your clients.

CA jignesh daiya

CA jignesh daiya

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14 April 2021 any judgment for the same ?

CA jignesh daiya

CA jignesh daiya

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19 April 2021 Whether Nerebuy Is Considered As E commerce Operator ? Our Business Are Also Same Type OF Model For Payment Collection.

CA jignesh daiya

CA jignesh daiya

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19 April 2021 Assessee is a LLP working as an intermediary between Retailer and customer. Assessee collects fees from the customer and pays to Retailer with which the company has tie-up. For example: Company has tie-up with Retailer . Company collects Amount For Sell Of Coupon . Customer goes to the suggested Retailer and company pays to the Retailer directly on behalf of the customer. However, Company is only liable to pay for the services consumed by the customer Issue: Whether company is required to get registered as an E-Commerce operator? If registered as E-Commerce operator then what will be the liability to collect tax For Gst As well As Income Tax from Retailer in case Retailer are not registered under GST? Kindly clarify the GST Registration requirement

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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19 April 2021 you are only intermediary not selling the goods and collecting money for sale of goods. You are only an advertising agency with novel way.

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