ENA MSME 2023-12-29 17:31:32 <p><span style="font-size:14px"><strong>New Delhi, Dec 29 (KNN)</strong> The Income Tax department has provided clarity on the TDS liability for e-retailers engaged in transactions through the government's Open Network for Digital Commerce (ONDC), on Thursday.</span></p> <p><span style="font-size:14px">According to the Frequently Asked Questions (FAQ) released by the Central Board of Direct Taxes (CBDT), a 1 per cent Tax Deducted at Source (TDS) is mandated to be deducted from the gross sale amount.</span></p> <p><span style="font-size:14px">This includes convenience, packaging, and shipping fees charged by e-commerce platforms facilitating orders on ONDC.</span></p> <p><span style="font-size:14px">ONDC, initiated by the Department for Promotion of Industry and Internal Trade (DPIIT), prompted the CBDT to address representations seeking clarification on TDS compliance responsibilities under Income Tax laws.</span></p> <p><span style="font-size:14px">In compliance with the law, each e-commerce operator is obligated to deduct TDS at a rate of 1 per cent from the sales amount of goods/services conducted through its platform.</span></p> <p><span style="font-size:14px">The CBDT has explicitly stated that in scenarios involving multiple E-Commerce Operators (ECOs) in a single transaction via the ECO platform, TDS compliance rests with the supplier, who ultimately disburses payment.</span></p> <p><span style="font-size:14px">The CBDT has clarified that in a situation where multiple e-commerce operators (ECOs) are involved in a single transaction through the ECO platform, the TDS compliance is to be done by the supplier side, who finally releases the payment to the supplier.</span></p> <p><span style="font-size:14px">Established on December 31, 2021, ONDC operates as a Section 8 company and stands as an innovative initiative by DPIIT.</span></p> <p><span style="font-size:14px">It aims to facilitate small retailers in leveraging digital commerce opportunities.</span></p> <p><span style="font-size:14px">ONDC is not an application, platform, intermediary, or software but a set of specifications designed to foster open, unbundled, and interoperable networks.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36077 https://knnindia.co.in/news/newsdetails/msme/e-retailers-on-ondc-required-to-deduct-1-tds-on-gross-sale 2023-12-29 17:31:32 knnindia.co.in