8 Comments

  1. Pramod Reply

    I am also a CA, and have been mostly in business. As the law stands today, the onus is on the seller to “deduct” the TDS. The Government is not concerned if you are reimbursed the amount by the marketplace or not. This is really unfortunate. However, I have not incurred any loss on this account as I understood my responsibility to begin with and was depositing/claiming the amount in time and have always got reimbursed by the marketplaces. The only outstanding is the 1st quarter for the year 2016-17 for which I have lodges claim towards the end of July 16, and hopefully will get reimbursed without any hassle.

    I would agree that there is a problem with law. There are several cases of this type – example if as a principal, you are sending material to a commission agent for sale, and the agent pays the sale realization after deducting his commission – again the principal is liable to recover TDS from the agent. It problem must be addressed.

  2. gautam Reply

    similar situation I have faced recently. Flipkart started deducting TDS from the payment to me from april 2016. this was reflecting in their commission invoices. Since i am aware of the TDS thing, I discussed this with my CA, who said I need not make any TDS payment since my last year’s turnover was below Rs. 1 crore. Lots of exchanges and verbal talks happened with flipkart but i personally got down to check the TDS rules. therein it is stated that even if my turnover is below rs. 1 crore i need to deduct TDS under certain conditions where the business has crossed a certain level under different clauses (here 194H.194C). it seemed useless arguing with these people so i deposited the april/may/june TDS with interest. But flipkart is so unprofessional – they changed their TDS statement twice. Once they calculated showing NILWHT, then they issued fresh without it, by the time the TDS was already deposited and the return filed. now i had to again deposit the difference (U/s 194H, whereas extra was paid U/S 194C as per earlier statement) and refiled the return. I am yet to get the form 16A to upload on flipkart which I will do in due course to reclaim the amount. So finally i decided to keep it going now. if I am right and if there is any way out of this please let me know as you are an expert on this topic. it is a burden and an expense for us.

  3. lucky Reply

    What a classic article!!!!!!

    Today i got to know that why snapdeal and amazon are sending us monthly invoices with service tax amount…

    I am selling online for more than a year…

    Oh… I was missing it.. Now thanks to Indiaonlineseller…….

    Now i m collecting all invoices. I will pay service tax on below website.

    https://cbec-easiest.gov.in/EST/InputPageForEPaymentServlet

    will get form 16A after paying online.

    Then submit form 16A to respective seller website and get he reimbursement…

  4. Manish Reply

    Hi

    I have a partnership firm, the turnover is less than 1 crore. Am i liable to pay TDS.

    Can you direct towards the documents/text regarding it.

  5. Dipti Reply

    Thanks for this article and throwing light on this issue. There is a lot of confusion around and no help from marketplaces regarding this.

    I have a confusion whether sellers should be deducting TDS on the shipping charges that are levied on us(deducted while crediting payments) by these marketplaces besides the commission that they charge.

    Another doubt is, Voonik mentions this “commission” in the invoice as “Marketing Fees” and they have also mentioned that sellers should be deducting TDS under section 194 C. I was under the impression that this would go under 194H. The agreement/ MOU signed with us by Voonik mentions that they will be deducting “Commission”. They haven’t mentioned the term “marketing fees” anywhere in the Seller agreement/ MOU.

    Further their FAQ section mentions the following-

    “Voonik charges 20% marketing charge (plus service tax on commission) for all delivered orders on Selling Price. The shipping charge is to be borne by the seller partner. Current shipping charge is INR 70.00 for below 1 Kg.

    Voonik keep rights to update commission and other necessary charges at any point of its business, which will be communicated to the sellers as necessary.”

    Cou

  6. Dipti Reply

    Thanks for this article and throwing light on this issue. There is a lot of confusion around and no help from marketplaces regarding this.

    I have a confusion whether sellers should be deducting TDS on the shipping charges that are levied on us(deducted while crediting payments) by these marketplaces besides the commission that they charge.

    Another doubt is, Voonik mentions this “commission” in the invoice as “Marketing Fees” and they have also mentioned that sellers should be deducting TDS under section 194 C. I was under the impression that this would go under 194H. The agreement/ MOU signed with us by Voonik mentions that they will be deducting “Commission”. They haven’t mentioned the term “marketing fees” anywhere in the Seller agreement/ MOU.

    Further their FAQ section mentions the following-

    “Voonik charges 20% marketing charge (plus service tax on commission) for all delivered orders on Selling Price. The shipping charge is to be borne by the seller partner. Current shipping charge is INR 70.00 for below 1 Kg.

    Voonik keep rights to update commission and other necessary charges at any point of its business, which will be communicated to the sellers as necessary.”

    Could you please guide on what needs to be done in this scenario

  7. rohit gupta Reply

    can you tell me at what point of time we have to deposit tds

    if our tds amount of a year is very low lets suppose it was 4000 of a year then we liable to pay or not

  8. ashi patel Reply

    can i deduct TDS as we sell on amazon , flipkart and snapdeal . we didnt deduct or even file TDS return still. please can you help me about this topic ?

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