Zomato Accounting

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Rishabh Singh (Querist)
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11 October 2021 If we are running a restaurant bussiness and we are also delivering food via zomato & swiggy then zomato and swiggy cut their commission with axes and send us money on weekly basis after deducting tds and tcs. For their commission they gave us a service fee invoice.
So the question is
Why they cut tds and tcs ?
Bcz we are not giving them in any service and invoice

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 October 2021 The Finance Act 2020 dictates every e-commerce operator to deduct 1 % TDS of the gross amount of sales of the e-commerce participant.

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator’s online platform. TCS will be charged as a percentage on the net taxable supplies.The provision of TCS under GST is dealt under Section 52 of the CGST Act.

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