Circular – CBDT issued guidelines in respect of TDS by E-commerce operator u/s 194-O of Income Tax Act replying questions generally arise

 CIRCULAR NO. 20/2023 dated 28.12.2023

CBDT issued guidelines replying following question:

“3. Guidelines

3.1 Who should deduct tax at source where there are multiple e-commerce operators (ECO) involved in a transaction?

3.2 E-commerce operators may be levying convenience fees or charging commission for each transaction and seller might levy logistics & delivery fees for the transaction. Payments may also be made to the platform or network (e.g. ONDC) provider for facilitating the transaction. Would these form part of "gross amount" for the purposes of TDS under section 194-O of the Act?

3.3 How will GST, various state levies and taxes other than GST such as VAT/ Sales tax/ Excise duty / CST be treated when calculating gross amount of sales of goods or provision of services as per the provisions of section 194-O of the Act?

3.4 How will adjustment for purchase-returns take place?

3.5 How will discounts given by seller as an e-commerce participant or by any of the multiple e-commerce operators be treated while calculating "gross amount"?

a) Seller Discount: b) Buyer ECO or Seller ECO Discount”

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