Section 194-O(6) — the law in short
What the courts have decided on section 194-O(6), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
-
Statutory position — s.194-O: the e-commerce operator's rate fell from one per cent to 0.1 per cent on 1 October 2024, and sub-section (3) shuts out every other TDS section
CBDT Circulars & InstructionsCuts both ways
I sell through a marketplace and the operator is deducting under section 194-O. What is the rate now, when does the five lakh exemption apply, and can the operator also deduct under section 194H or 194J on the same transaction?
The rate is 0.1 per cent of the gross amount of the sales or services, substituted for one per cent with effect from 1 October 2024. No deduction is made where the e-commerce participant is an individual or Hindu undivided family whose gross amount of such sale or services during the previous year does not exceed five lakh rupees and who has furnished PAN or Aadhaar to the operator. And sub-section (3) provides that a transaction on which the operator has deducted under sub-section (1), or which is not liable to deduction because of sub-section (2), shall not be liable to tax deduction at source under any other provision of Chapter XVII-B — subject to a proviso that takes advertising and other services unconnected with the sale out of that shelter.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.