TDS on payment gateway charge

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articleship
137 Points Posted on 06 May 2021
we sell goods online and received payment through payment gateway such as PayU and PayPal.
PayU and PayPal deduct some percentage as fees and remit the balance amount.

whether TDS is to be deducted in above case?
If yes den under 194h or 194c?
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On 06 May 2021 at 11:31 Report
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Quick Summary
This discussion explores whether Tax Deducted at Source (TDS) needs to be applied to charges levied by payment gateways like PayU and PayPal for online sales. Participants debate the applicability of sections 194H (commission) and 194C (contractual payments), with differing opinions on which section is most appropriate and the potential TDS rates involved.

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Chartered Accountant
24588 Points Posted on 06 May 2021
I think 194H will be applicable
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On 06 May 2021 at 12:05
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Learner
2398 Points Posted on 06 May 2021
As it is in nature of commission, in my view is you have to deduct TDS as per 194H.
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On 06 May 2021 at 15:42
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Practice
1361 Points Posted on 06 May 2021
If it is in the nature of commission then yes tds should be deducted under 194H.
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On 06 May 2021 at 16:44
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tax consultant
3306 Points Posted on 07 May 2021
Go for 194C. there you have lower rate of tds.
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On 07 May 2021 at 15:16

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