Introduced to broaden the tax base, Section 194-O mandates e-commerce operators to deduct TDS at 1% on the gross amount of sales facilitated through their digital platforms. This TDS applies at the time of credit or payment, whichever is earlier. For individual or HUF sellers, a threshold of INR 5,00,000 is allowed, provided PAN or Aadhaar is furnished. If PAN is absent, the rate escalates to 5% under Section 206AA. E-commerce platforms must compile structured reconciliations quarterly using Form 26Q.
Introduced to broaden the tax base, Section 194-O mandates e-commerce operators to deduct TDS at 1% on the gross amount of sales facilitated through their digital platforms. This TDS applies at the time of credit or payment, whichever is earlier. For individual or HUF sellers, a threshold of INR 5,00,000 is allowed, provided PAN or Aadhaar is furnished. If PAN is absent, the rate escalates to 5% under Section 206AA. E-commerce platforms must compile structured reconciliations quarterly using Form 26Q.