Question ID : 44343

TDS on commission to e-commerce website operator

One of my client sell goods through e commerce website operator. The e-com company deduct TDS u/s 194-O on payment made to my client (sales proceeds). Further the e-com company also deduct it's commission. Is section 194H applicable on such commission charged by ecom company or its is excluded vide provision of section 194O(3)?

Answer ID : 83639

Please read the agreement very carefully. If it is commission which is being retained by the E- commerce operator then TDS may be applicable on the commission. 194O safeguards the seller from further deduction of tax on the amount on which e-com company has deducted tax but does not give relief to the payer of commission from deduction of tax at source.

Answer ID : 83671

TDS to be deducted under section 194C/194H as the case may be

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