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Revision of TDS Rates on e-commerce sellers under Section 194O of Income Tax Act
Summary: community_export mentions the topic of revision of TDS rates on e-commerce sellers under Section 194O of the Income Tax Act but does not provide any content or further discussion in the post.
Dear Seller,
Please refer to our AB Post dated 19 April 2022 which stated that e-commerce entities facilitating sale of goods of e-commerce sellers must deduct tax at source (“TDS”) on the gross amount of their sales paid or credit to such e-commerce sellers. TDS is deducted for all Indian resident sellers where the gross sales of the goods or services during the financial year is more than INR 500,000.
Effective 1 April 2021, the TDS rate was 1% on the gross sales of goods or services. Where the e-commerce seller had not provided a permanent account number (“PAN”) or where the PAN was not operational or valid, the TDS rate was 20%.
Please note, effective 2 February 2023, the TDS rate has been decreased from 20% to 5% where the e-commerce seller has not provided a PAN or where the PAN is not operational or valid or wrongly updated.
Regards
Team eBay
