CBDT Clarifies TDS for E-Retailers on ONDC
By Rediff Money Desk, NEWDELHI Dec 28, 2023 22:49
The income tax department has clarified TDS liability for e-retailers trading through the government's ONDC initiative. Learn about the 1% TDS deduction and compliance requirements.
![CBDT Clarifies TDS for E-Retailers on ONDC](https://im.rediff.com/news/2018/sep/20digital1.jpg)
New Delhi, Dec 28 (PTI) The income tax department on Thursday clarified the applicability of TDS liability of e-retailers trading through the government's ONDC initiative.
As per the FAQ issued by the Central Board of Direct Taxes (CBDT), a 1 per cent TDS will have to be deducted from the gross sale amount after including convenience/ packaging/shipping fees as charged by e-commerce trading platforms for the order placed on ONDC.
As ONDC or Open Network for Digital Commerce is a new initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), the CBDT had received representations seeking clarity on who should be liable for Tax Deducted at Source (TDS) compliance under I-T laws.
Under the law, every e-commerce operator is required to deduct TDS at the rate of 1 per cent of the sales amount of goods/services sold through its platform.
The CBDT has clarified that in a situation where multiple e-commerce operators (ECOs) are involved in a single transaction through the ECO platform, the TDS compliance is to be done by the supplier side, who finally releases the payment to the supplier.
Incorporated on December 31, 2021, ONDC is a Section 8 company.
It is an initiative of the DPIIT to create a facilitative model to help small retailers take advantage of digital commerce. It is not an application, platform, intermediary, or software but a set of specifications designed to foster open, unbundled, and interoperable open networks.
As per the FAQ issued by the Central Board of Direct Taxes (CBDT), a 1 per cent TDS will have to be deducted from the gross sale amount after including convenience/ packaging/shipping fees as charged by e-commerce trading platforms for the order placed on ONDC.
As ONDC or Open Network for Digital Commerce is a new initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), the CBDT had received representations seeking clarity on who should be liable for Tax Deducted at Source (TDS) compliance under I-T laws.
Under the law, every e-commerce operator is required to deduct TDS at the rate of 1 per cent of the sales amount of goods/services sold through its platform.
The CBDT has clarified that in a situation where multiple e-commerce operators (ECOs) are involved in a single transaction through the ECO platform, the TDS compliance is to be done by the supplier side, who finally releases the payment to the supplier.
Incorporated on December 31, 2021, ONDC is a Section 8 company.
It is an initiative of the DPIIT to create a facilitative model to help small retailers take advantage of digital commerce. It is not an application, platform, intermediary, or software but a set of specifications designed to foster open, unbundled, and interoperable open networks.
Read More On:
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Vodafone Idea L
- 17.90 ( -3.35)
- 166585989
- Alstone Textiles
- 0.75 (+ 8.70)
- 47681821
- GTL Infrastructure
- 3.27 (+ 4.81)
- 44040612
- Visagar Financial
- 0.91 (+ 12.35)
- 29755394
- YES Bank Ltd.
- 23.70 (+ 0.77)
- 22163699
MORE NEWS
![Piyush Goyal:...](https://im.rediff.com/80-80/money/2017/jan/11goyal.jpg)
Piyush Goyal: Govt Committed to Industrial...
Hyderabad, Jun 30 (PTI) Union Commerce Minister Piyush Goyal on Sunday said the...
![Piyush Goyal:...](https://im.rediff.com/80-80/money/2019/jan/23piyush.jpg)
Piyush Goyal: Govt Committed to Industrial...
Hyderabad, Jun 30 (PTI) Union Commerce Minister Piyush Goyal on Sunday said the...
![Indian Economy...](https://im.rediff.com/80-80/money/2020/nov/22economy.jpg)
Indian Economy Growth: Exports, Manufacturing &...
Mumbai, June 30 (PTI) Healthy increase in the country's exports, improvement in the...