Tds on commission and other Expenses

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355 Points Joined June 2017
After 194O, is Seller still need to deduct Tds on payment to Amazon or Flipkart commission invoice and Advertising invoice, please guide
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On 12 October 2024 at 14:52 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

After the introduction of Section 194O in the Income-tax Act, 1961, the seller is not required to deduct TDS on payments made to e-commerce operators like Amazon or Flipkart for: 1. Commission invoices 2. Advertising invoices Section 194O states that the e-commerce operator is required to deduct TDS at 1% on the gross amount of sales or services provided through their platform. This TDS deduction is applicable if the sales or services provided exceed ₹5 lakhs in a financial year. However, if the seller is paying Amazon or Flipkart for advertising services directly, TDS deduction may still be applicable under Section 194C (TDS on payments to contractors and subcontractors) or Section 194J (TDS on professional fees). To summarize: - No TDS deduction by the seller on commission payments to e-commerce operators like Amazon or Flipkart. - TDS deduction may still apply on direct advertising payments to these platforms, depending on the circumstances. Please consult a tax professional or chartered accountant for specific guidance on your situation.

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On 13 October 2024 at 21:47


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