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Taxability in online tuition classes

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This query is : Resolved

Kott Dharan (Querist)

03 February 2022 Suppose a website offers English learning classes. Teachers sign up on the website and offer their classes and students join their classes. Teachers set the schedules and class duration and other matters. Students pay fees on the website and at the end of the month, the website pays the fees to the teachers, after deducting commission. Questions are :

1) What is the revenue that is to be reported by the website? The total fees or only the commission ?

2) Are teachers contractors under IT and if so, is TDS to be deducted on monthly payments to teachers ?

Do let me know your thoughts on these. Appreciate your time and help. Thank you very much.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)

04 February 2022 1) since the website retains only the commission part so revenue to be reported is commission only. tuition fees is paid to the teachers which is their income.
2) In my view tds should be deducted under section 194J professional services and not as contractors under section 194C.

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