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of Income Tax: Section 194-O of the Income Tax Act provides for deduction of tax at source (TDS) at the rate of 1% on the gross amount of sales or services facilitated by an e-commerce operator through its digital or electronic platform for an e-commerce participant. To bring parity with the TDS/TCS rates applicable on offline transactions, it is proposed to reduce the TDS rate u/s 194-O from 1% to 0.1%. The amendment will take effect from October 1, 2024.
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