TDS on Commission of e-commerce operators

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soorej (Querist)
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12 October 2021 For Sales through e-commerce, we are liable to pay commission....In our case, Commission is deducted from the Gross Receipt itself and only the balance amount is paid to us.... TDS at 1% on REVENUE is deducting by ecommerce operators

are we liable to pay TDS on COMMISSION to ecommerce operators . ....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 October 2021 Yes, If the e-commerce participant is a resident Individual or HUF and the gross sales exceed Rs. 5,00,000 in the financial year, TDS u/s. 194O would be deducted at the rate of 1% on Gross Sales.

The e-commerce operator is required to issue Form 16A to the e-commerce seller. This form can be used by the seller to claim credit of the tax deducted while filing the Income Tax Return.

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