Kickstart 2026 with CAclubindia Pro. Get 10% OFF. Subscribe Now! Use Code: HNY10

Charges by amazon - freight, comm. etc. should i deduct tds

TDS 3386 views 1 replies

Bablu Kumar Jha

Accounts Manager

266 Points Joined November 2008

Hello Professionals,

Please helf me on below matter :

We deals with Amazon seller and they charged from us as Listing fee, FBA delivery Fee, FBA pick and pack fee, FBA weight handling shipping fee, fixed closing fee end of every months.

1. Shall we categorise these expenses as Freight Outward Exp (clubbing of delivery fee, pick n pack, weight handling shipping fee & Closing fee) and Commission instead of Listing Fee ?

2. After categorizing these expenses into two parts : (1) Freight Outward & (2) Commission, Shall we deduct TDS separately as applicable by Income Tax act.

3. Shall we clubb all expenses as charged by Amazon and deducted TDS as commission as applicable rate ?

With Regards,

Bablu Kumar Jha

Commission / Listing Fee

FBA Delivery Service Fee

FBA Pickup & Pack Fee

FBA Weight Handling Shipping Fee

Fixed Closing Fee

Replies (1)

Akshay Jain

Audit

22 Points Joined March 2018

For e-commerce sellers only two section are of importance

Section 194C: Payment to Contractors/Sub-Contractors. This section is for deduction of courier charges/Shipping charges since courier partners are our indirect contractors. Though the section says that for Individual the deduction is 1% we deduct 2% for all Invoices.
Section 194H: Commission or brokerage. Since e-commerce websites are like commission agents we are liable to deduct TDS on the service provided by them. So in your Invoice apart from Shipping charges (Section 194C) all others will go in this section. For example commission Fee, Collection Fee, Fixed Fee, Marketing Fee and others will go under this section.