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.

[TANAY GHILDIYAL]

Dear Mr. Lav

Since we are receiving the revenue after deduction of commission and other charges have been done by Zomato/Swiggy we are not impowered to deduct TDS in this case as the online platform is acting as our agent and is collecting money on our behalf and after deduction it's paying it off. 

Moreover TDS u/s 194O is being deducted and deposited by the e-commerce operator. Under Law there is no requiremnet or liability under TDS for your firm.

Tanay Ghildiyal

9873938771

AI Summary

TDS on e commerce payments: restaurants need not deduct when e commerce operators deduct under section 194O. Where an online food aggregator collects payments, deducts commission and charges, and withholds tax under the e commerce withholding mechanism, the restaurant that receives net proceeds from the platform is not independently obligated to deduct TDS because the platform acts as the collecting intermediary and the operative payer responsible for withholding.