TDS on e-commerce Transactions i.e.194-O
Finance Act 2020 has brought a new section i.e. section 194O, this sections has introduced for TDS on e commerce Transactions,Tax deduction at source (TDS) or Tax collected at source (TCS) are the most convenient mode of tax collection by the government thus it is a tool to collect tax to minimize the tax evasion by taxing the income at the time when income generated and instead of taxing on a later date.
A new section 194O (i.e. TDS on e-commerce ) has been inserted which requires to ecommerce operator to deduct TDS on the amount sale or service effected through his platform. E commerce operator like amazon, Uber, flipkart, Myntra,Zomato ,swiggy,makemytrip, & this provision will affect the their sellers.. I am making an effort to discuss and explain the impact & implication of the provision in following paragraphs in FAQ format.