Assessee would be considered as electronic commerce operator when digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged

Last updated: 02 May 2024

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Quick Summary

The Karnataka AAR has ruled that a company facilitating the sale of digital gold through its online platform, even if sales proceeds go directly to the seller via an escrow account, is considered an electronic commerce operator. As such, the company is required to collect tax at source (TCS) under Section 52 of the CGST Act and must obtain compulsory registration as an e-commerce operator.

Court :
Karnataka, AAR

Brief :
The Karnataka, AAR in the case of In Re. M/s. Changejar Technologies Private Limited [Advance Ruling No. KAR ADRG 08/2024 dated February 28, 2024] ruled that the Applicant would be considered as electronic commerce operator and is required to collect tax at source in case where the digital gold is sold through the platform and sale amount is directly paid through escrow account for which commission is charged.

Citation :
Advance Ruling No. KAR ADRG 08/2024 dated February 28, 2024

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1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

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Attached File : 671907_5665_changejar_technologies_pvt_ltd.pdf

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Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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