![CBDT Issues Guidelines on Under Section 194-O of IT Act 1961 CBDT Issues Guidelines on Under Section 194-O of IT Act 1961](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDyjvYTDTijF8a3r3TdqnPGEEVskBF-2mxqbSGRuJ_Db0vF5xrxZfz0ZVrI5htiHVMZo3xsKTC4EqGy3UeFr3oacNmZPeswHF0LCqv-eFrT0GBNftTiVDds7cBGRImLyv8-q33CtrWZ_ppzSlcDph_ufv2qNqFzZJcgaEHnkpKbdKpEhSG5fZ2izkrpqDv/w320-h192-rw/Copy%20of%20Copy%20of%20Copy%20of%20Untitled%20(500%20%C3%97%20300%20px)%20(500%20%C3%97%20280%20px)%20(10).png)
- Here are some highlights from the guidelines:
- Multiple E-commerce Operators: The guidelines outline the scenarios and the respective ECOs responsible for TDS in cases involving multiple ECOs.
- Fees and Charges: The circular addresses the inclusion of convenience fees, commission charges, and logistics/delivery fees in the “gross amount” for TDS calculation.
- GST and State Levies: Tax deduction under section 194-O should be on the amount credited without including GST, state levies, or other taxes if separately indicated in the invoice.
- Purchase-Returns and Adjustments: If tax has already been deducted before the purchase-return, adjustments can be made against the next transaction with the same seller in the same financial year.
- Treatment of Discounts: The circular distinguishes between seller, buyer ECO, and seller ECO discounts.
- These guidelines serve as a comprehensive guide for e-commerce operators and participants regarding TDS under section 194-O.
Question:
Q.1 What does Section 194-O of the Income-tax Act, 1961 pertain to?a. Tax Deduction at Source (TDS) for e-commerce operators
b. Goods and Services Tax (GST) for retail businesses
c. Corporate tax for multinational companies
d. Income tax for individual taxpayers