Categories
TDS

Section 194O of the Income Tax Act

Section 194O of the Income-tax Act, 1961 deals with Tax Deducted at Source (TDS) on payments made to e-commerce participants. It was introduced in the Union Budget 2020 and came into effect on 1st October 2020.

TDS on e-commerce

Here’s a summary of the key points of Section 194O:

Who is responsible for deducting TDS?

E-commerce operators like Amazon, Flipkart, Meesho, etc., are responsible for deducting TDS at the rate of 1% on the gross amount of sales made through their platform by sellers (e-commerce participants).

What transactions are covered?

The TDS applies to sales of goods, provision of services, or both facilitated through the e-commerce platform. This includes professional and technical services as well.

When is the TDS deducted?

The TDS is deducted at the time of crediting the seller’s account, irrespective of the mode of payment, or at the time of making payment to the seller, whichever is earlier.

Threshold limit:

There is no threshold limit for e-commerce companies. They are required to deduct TDS on all transactions facilitated through their platform. However, for individual/HUF e-commerce participants, no TDS is deducted if the gross amount of sales during the previous year does not exceed Rs 5 lakh and they have furnished their PAN or Aadhaar.

Purpose of Section 194O:

This section aims to improve tax compliance by bringing e-commerce participants under the TDS net. Many small sellers operating on e-commerce platforms often miss filing their income tax returns. By collecting TDS at the source, the government ensures that some tax is collected upfront even if the seller doesn’t file their returns.
I hope this summary is helpful. If you have any further questions about Section 194O or its implications, feel free to ask!

Gaurav Sharma
8878797882
Infinityservices2018@gmail.com
Infinityservices2018.com

Categories
Income tax TAN or Tax deduction TDS

Income Tax due dates for July 2023

7 July 2023 –

​Due date for deposit of Tax deducted/collected for the month of June, 2023. However, all sum deducted/collected by an office of the government shall be paid to the credit of the Central Government on the same day where tax is paid without production of an Income-tax Challan

7 July 2023 –

​Due date for deposit of TDS for the period April 2023 to June 2023 when Assessing Officer has permitted quarterly deposit of TDS under section 192, 194A, 194D or 194H

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of May, 2023

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194-IB in the month of May, 2023

15 July 2023 –

​​Due date for issue of TDS Certificate for tax deducted under section 194M in the month of May, 2023​

15 July 2023 –

​Due date for issue of TDS Certificate for tax deducted under section 194S in the month of May, 2023

Note: Applicable in case of specified person as mentioned under section 194S

15 July 2023 –

​Quarterly statement in respect of foreign remittances (to be furnished by authorized dealers) in Form No. 15CC for quarter ending June, 2023

15 July 2023 –

​Quarterly statement of TCS deposited for the quarter ending 30 June, 2023​

15 July 2023 –

​Upload the declarations received from recipients in Form No. 15G/15H during the quarter ending June, 2023

15 July 2023 –

​Due date for furnishing statement in Form no. 3BB by a stock exchange in respect of transactions in which client codes been modified after registering in the system for the month of June, 2023

30 July 2023 –

​Quarterly TCS certificate in respect of tax collected by any person for the quarter ending June 30, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IA for the month of June, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194-IB for the month of June, 2023

30 July 2023 –

​Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194M for the month of June, 2023

30 July 2023 –

Due date for furnishing of challan-cum-statement in respect of tax deducted under section 194S in the month of June, 2023

Note: Applicable in case of specified person as mentioned under section 194S

31 July 2023 –

​Quarterly statement of TDS deposited for the quarter ending June 30, 2023

31 July 2023 –

​​Return of income for the assessment year 2023-24 for all assessee other than (a) corporate-assessee or (b) non-corporate assessee (whose books of account are required to be audited) or (c) partner of a firm whose accounts are required to be audited or the spouse of such partner if the provisions of section 5A applies or (d) an assessee who is required to furnish a report under section 92E.

31 July 2023 –

​Quarterly return of non-deduction of tax at source by a banking company from interest on time deposit in respect of the quarter ending June 30, 2023.

31 July 2023 –

​Statement by scientific research association, university, college or other association or Indian scientific research company as required by rules 5D, 5E and 5F (if due date of submission of return of income is July 31, 2023)​

31 July 2023 –

​Intimation in Form 10BBB by a pension fund in respect of each investment made in India for quarter ending June, 2023​

31 July 2023 –

​Intimation in Form II by Sovereign Wealth Fund in respect of investment made in India for the quarter ending June 2023

Source- https://incometaxindia.gov.in/

Enquiry

    error: Content is protected !!