Quick Summary
Section 194-O of the Income-tax Act, 1961 (the Act) provides that an e-commerce operator shall deduct income-tax at the rate of one per cent of the gross amount of sale of goods or provision of service, or both, facilitated through its digital or electronic facility or platform. Vide CBDT Circular No. 20/2023 dated 28.12.2023 guidelines have been issued for removal of difficulties and clarity has been provided on various issues pertaining to applicability of section 194-O of the Act in a
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FAQ :
Section 194-O states that an e-commerce operator must deduct income tax at a rate of one per cent of the gross sale amount for goods or services facilitated through their digital platform.
The guidelines, issued via CBDT Circular No. 20/2023, are designed to remove difficulties and provide clarity on the application of Section 194-O, particularly in complex scenarios involving multiple e-commerce operators.
Yes, the guidelines specifically address the applicability of Section 194-O in a multiple e-commerce operator model framework, such as the Open Network for Digital Commerce (ONDC).
The circular details various situations with examples and incorporates Frequently Asked Questions (FAQs) to provide clarity on different issues related to Section 194-O.
The guidelines were issued by the Central Board of Direct Taxes (CBDT).
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