E-Commerce operator liable to deduct TCS and TDS of the Supplier

[Navneet Agarwal]

Dear Sir/Madam,

The company owns a platform which assists in creating Digital Showroom which assist in creating Digital Showroom, Start online selling & grow your online shop/Kirena store. Any wholesaler or retailer or a small store owner, you can run your whole e-commerce on online platform. Vendor’s will registered in platform by paying certain amount as Subscription fees.

After registering in platform, Customers can get access to the online showrooms, online platform. Interested customers can contact directly to the registered vendors to purchase goods or services. The consideration can be paid through the platform or can be directly to vendors like COD. Currently, Company’s revenue is only subscription fees collected while registering.

Company would like to know the applicability of TDS and TCS provisions under Income Tax and GST Act. Whether company needs to take separate registration for TCS under Section 52 and Deduct TDS of the Seller U/S 194-O?

Thanks

AI Summary

E-commerce Company Must Register for TCS under GST Act Section 52 and TDS under Income Tax Act Section 194-O An e-commerce company inquired about its obligations under the Income Tax and GST Acts regarding Tax Collected at Source (TCS) and Tax Deducted at Source (TDS). The company, which operates a digital platform for online showrooms, currently earns revenue through subscription fees. Respondents advised that the company must register for TCS under Section 52 of the GST Act and for TDS under Section 194-O of the Income Tax Act. It was clarified that registration is mandatory for electronic commerce operators, and the company should follow specific procedures, including using the correct forms for registration under the CGST Rules.