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

Electronic commerce operator registration required: must register and collect TCS under GST while reviewing Income Tax withholding obligations.
Electronic commerce operators who manage digital platforms fall within the ECO definition and must obtain GST registration for collection of tax at source by applying through FORM GST REG-07 under Rule 12 and the registration provisions; registration is compulsory for operators required to collect TCS and the officer may issue or cancel registration per CGST rules. The operator should also evaluate withholding obligations under the Income Tax provisions in relation to platform transactions.