Tds on ebay charges

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Arun Singh (Querist)
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18 April 2014 One of my client is selling products through ebay. Ebay collect the payment on their behalf from the customer and pay balance amount to my client after deducting their charges. Now question comes whether the charges will liable for TDS or not? If yes, how the same will be managed practically.

Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 Yes the charges r applicable to TDS u/s 194C, if it crosses the limit mentioned under that section.

Arun Singh

Arun Singh (Querist)
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18 April 2014 I want to understand how the sellers are handling this issue with ebay (if anyone have any such client). Also why the same will not come under commission definition?

Sandeep Dharar

Sandeep Dharar (Expert)
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18 April 2014 Co it is purely a commission income for Ebay. & if there r such clients for whom the limit crosses then the seller has the right to deduct TDS.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 April 2014 seller need to deduct TDS under 194H - Commission/brokerage. But make sure you discuss the matter with ebay India before discussing because in past they had issues with clients withholding taxes.

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