TDS deduction by Restaurant on Zomato & Swiggy Commission & Other Charges ?

[Lav Prajapati]

Whether TDS is to be deducted by Restaurant (a partnership firm liable to audit u/s 44AB) on Zomato & Swiggy Commission & Other Charges, considering the fact that TDS is being deducted by Zomato & Swiggy u/s 194O.

AI Summary

Restaurant Not Required to Deduct TDS on Commissions from Zomato and Swiggy; Covered by Section 194O Obligations. A restaurant, structured as a partnership firm subject to audit under section 44AB, inquired whether it must deduct TDS on commissions and charges from Zomato and Swiggy, given these platforms already deduct TDS under section 194O. The response clarified that since Zomato and Swiggy act as agents, collecting and disbursing revenue after deducting their commissions, the restaurant is not required to deduct TDS. The e-commerce operators are responsible for TDS under section 194O, and there is no additional TDS obligation for the restaurant.