CBDT guidelines on withholding tax obligations under Section 194-O for e-commerce operators hosting multiple sellers. Clarifications on the reduced 0.1% TDS rate, reconciliation with Section 206C(1H) TCS, and mandatory quarterly reporting in Form 26Q.
Step-by-step advisory measures prescribed by ASGR and CO for immediate adherence:
Section 194-O mandates that where sale of goods or provision of services of an e-commerce participant is facilitated by an e-commerce operator through its digital or electronic facility, the operator must deduct income-tax at the time of credit of amount of such sale or service to the account of an e-commerce participant.
The CBDT circular expressly clarifies that where a transaction is subjected to TDS under Section 194-O, the seller is exempt from collecting TCS under Section 206C(1H), averting double tax withholding on the same commercial stream.
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