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Information Regarding Paying TDS
#1
Question 
Hello Everyone,

As we all know that we need to pay tds on marketplaces comission and shipping charges, and there is so much confusion about it. So kindly guide eligibilty and rules for paying TDS for various marketplaces charges.
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  • Salman
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#2
94H is now not applicable on Flipkart and Amazon they call it Fees and not Commission.

In Amazon they name it as EasyShip Weight Handling Fee, Fixed Closing Fee, Listing Fee, Refund Processing Fee,
So how can this come under 94H. It should be considered under 94C

Kindly update if I am wrong.
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#3
Thanks for bringing up this topic!


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#4
From April 2016 turnover limit of Rs 1 Crore has been increased to Rs 2 Crore? Is this information correct?
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#5
TDS category for Ecommerce market place is not very clearly defined in the law books.

The idea of Deducting the TDS is to Establish a Transaction trail between two parties and to ensure that the commission receiver / contract money receiver is under the Ambit of Laws.

As such if their is a slight difference in TDS category that you deduct doesn't make you a defaulter.

All seller should deduct TDS except below category.
1. Proprietorship Firm which are not under the ambit of Audit.

Different TDS category for ecommerce

1. 94C-  contract = shipping charge / logistic charge paid to market place/ Advertisement charges paid to market place.  2%
2. 94H- commission/brokerage = all Commission paid to market place.  10% upto 31st May 2016 /  5% from 1st June 2016.


However there is a catch in the invoices raised by marketplace.
----Amazon - It says it is Business support Fee.  This should ideally come under 94H. Since the nature of transaction is also commission type. 
----- Flipkart : - it clearly bifurcates Shipping charges and other. So shipping charges will go under 94C and balance under 94H
----- Other MP -  as per description on the invoice raised by them.

Please note that TDS is applicable only on the Basic amount and No TDS should be deducted on service tax.

People to remain on safer side generally deduct the TDS in the higher slab category.
Also friends please don't worry if you have deducted TDS on a higher side. The amount will be completely reimbursed to you.

there is 

In case of any query please report here.
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  • Jitoo
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#6
(07-05-2016, 04:19 PM)ankit@storyathome.com Wrote: You are not allowed to view links. Register or Login to view.TDS category for Ecommerce market place is not very clearly defined in the law books.

The idea of Deducting the TDS is to Establish a Transaction trail between two parties and to ensure that the commission receiver / contract money receiver is under the Ambit of Laws.

As such if their is a slight difference in TDS category that you deduct doesn't make you a defaulter.

All seller should deduct TDS except below category.
1. Proprietorship Firm which are not under the ambit of Audit.

Different TDS category for ecommerce

1. 94C-  contract = shipping charge / logistic charge paid to market place/ Advertisement charges paid to market place.  2%
2. 94H- commission/brokerage = all Commission paid to market place.  10% upto 31st May 2016 /  5% from 1st June 2016.


However there is a catch in the invoices raised by marketplace.
----Amazon - It says it is Business support Fee.  This should ideally come under 94H. Since the nature of transaction is also commission type. 
----- Flipkart : - it clearly bifurcates Shipping charges and other. So shipping charges will go under 94C and balance under 94H
----- Other MP -  as per description on the invoice raised by them.

Please note that TDS is applicable only on the Basic amount and No TDS should be deducted on service tax.

People to remain on safer side generally deduct the TDS in the higher slab category.
Also friends please don't worry if you have deducted TDS on a higher side. The amount will be completely reimbursed to you.

there is 

In case of any query please report here.

Whats is the limit 1 Crore or 2 Crore?

And is this limit applicable on partnership firm?
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#7
Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to ` 2 crores to bring big relief to a large number of assessees in the MSME category.
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#8
I have sent proposal to Finance Minister of India to change this thing. But there was no response. It has been 2 years now


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#9
All type of business entity except Unaudited Proprietorship Firm have to compulsorily deduct TDS depending on the nature of the payment.
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#10
(07-05-2016, 04:19 PM)ankit@storyathome.com Wrote: You are not allowed to view links. Register or Login to view.TDS category for Ecommerce market place is not very clearly defined in the law books.

The idea of Deducting the TDS is to Establish a Transaction trail between two parties and to ensure that the commission receiver / contract money receiver is under the Ambit of Laws.

As such if their is a slight difference in TDS category that you deduct doesn't make you a defaulter.

All seller should deduct TDS except below category.
1. Proprietorship Firm which are not under the ambit of Audit.

Different TDS category for ecommerce

1. 94C-  contract = shipping charge / logistic charge paid to market place/ Advertisement charges paid to market place.  2%
2. 94H- commission/brokerage = all Commission paid to market place.  10% upto 31st May 2016 /  5% from 1st June 2016.


However there is a catch in the invoices raised by marketplace.
----Amazon - It says it is Business support Fee.  This should ideally come under 94H. Since the nature of transaction is also commission type. 
----- Flipkart : - it clearly bifurcates Shipping charges and other. So shipping charges will go under 94C and balance under 94H
----- Other MP -  as per description on the invoice raised by them.

Please note that TDS is applicable only on the Basic amount and No TDS should be deducted on service tax.

People to remain on safer side generally deduct the TDS in the higher slab category.
Also friends please don't worry if you have deducted TDS on a higher side. The amount will be completely reimbursed to you.

there is 

In case of any query please report here.
Last year 15-16 flipkart got the exemption on deduction in tds however we have paid about rs 1 lac
How to get back from govt ?flipkart has denied
Is for the current year 16 -17 flip kart got such exemption ?
Guide please

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