TDS Reimbursement: what is it?
Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government. TDS is applicable to a wide range of income categories including salaries, sales of goods sold, interest on fixed deposits, rent and commissions.
As an Amazon seller, you can claim TDS when you’re filing your annual income tax return. Your tax liability will be based on your annual sales.
Check out the TDS reimbursement process and the TDS FAQ for more information on filing for TDS.
TDS Reimbursement: what is it?
Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government. TDS is applicable to a wide range of income categories including salaries, sales of goods sold, interest on fixed deposits, rent and commissions.
As an Amazon seller, you can claim TDS when you’re filing your annual income tax return. Your tax liability will be based on your annual sales.
Check out the TDS reimbursement process and the TDS FAQ for more information on filing for TDS.
1 reply
Seller_lFg7VUzl8pJZA
@Noor_Amazon_
There is a technical mistake in your post.
The first part of the post is related to TDS deducted from sellers. But the link you provided is related to TDS on Amazon.
There are two types of TDS:
1. Deducted by Amazon from seller account on sales.
As per Section 194O Ecommerce Operator (Amazon in our case) shall deduct TDS @ 0.1% (Previously 1%) of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.
There is exemption applicable to Individual or HUF to extend of Rs. 5 Lakh of annual sale.
Which means Amazon will deduct 0.1 % as TDS on GROSS sales from the seller and deposit the same to Government. Amazon will also file relevant TDS return so that the amount so deducted in transferred to Seller's name in Govt books. The amount so collected in seller's name will be treated as Advance tax against Income Tax payable at the end of the financial year.
As Amazon is the payer, it can deduct the amount from the disbursement of funds. Sellers claim it from Government.
2. TDS deductible by Seller from Amazon on services provided
Services provided by Amazon like advertisement, listing fees, closing fees etc are subject to TDS from seller side. Individual and HUF are not liable to deduct any TDS.
Sellers other than Individual and HUF need to calculate the TDS thereon for fees charged by Amazon and deposit the same to Government. Government credits it to Amazon. Sellers are not payer of the original amount and hence they have no way to “deduct” the amount from Amazon. To get the reimbursement they have to send the Form 16A quarterly to Amazon. Amazon claims it from Government.
However, wef December, 2023, sellers are not required to deduct TDS on market fees. This is covered under “Which service fees are not subject to TDS?” in the link.
TDS Reimbursement: what is it?
Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government. TDS is applicable to a wide range of income categories including salaries, sales of goods sold, interest on fixed deposits, rent and commissions.
As an Amazon seller, you can claim TDS when you’re filing your annual income tax return. Your tax liability will be based on your annual sales.
Check out the TDS reimbursement process and the TDS FAQ for more information on filing for TDS.
TDS Reimbursement: what is it?
Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government. TDS is applicable to a wide range of income categories including salaries, sales of goods sold, interest on fixed deposits, rent and commissions.
As an Amazon seller, you can claim TDS when you’re filing your annual income tax return. Your tax liability will be based on your annual sales.
Check out the TDS reimbursement process and the TDS FAQ for more information on filing for TDS.
TDS Reimbursement: what is it?
Tax Deducted at Source (TDS) is a procedure implemented by the Indian government to collect taxes at the source of income. A certain percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then remitted to the government. TDS is applicable to a wide range of income categories including salaries, sales of goods sold, interest on fixed deposits, rent and commissions.
As an Amazon seller, you can claim TDS when you’re filing your annual income tax return. Your tax liability will be based on your annual sales.
Check out the TDS reimbursement process and the TDS FAQ for more information on filing for TDS.
1 reply
1 reply
Seller_lFg7VUzl8pJZA
@Noor_Amazon_
There is a technical mistake in your post.
The first part of the post is related to TDS deducted from sellers. But the link you provided is related to TDS on Amazon.
There are two types of TDS:
1. Deducted by Amazon from seller account on sales.
As per Section 194O Ecommerce Operator (Amazon in our case) shall deduct TDS @ 0.1% (Previously 1%) of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.
There is exemption applicable to Individual or HUF to extend of Rs. 5 Lakh of annual sale.
Which means Amazon will deduct 0.1 % as TDS on GROSS sales from the seller and deposit the same to Government. Amazon will also file relevant TDS return so that the amount so deducted in transferred to Seller's name in Govt books. The amount so collected in seller's name will be treated as Advance tax against Income Tax payable at the end of the financial year.
As Amazon is the payer, it can deduct the amount from the disbursement of funds. Sellers claim it from Government.
2. TDS deductible by Seller from Amazon on services provided
Services provided by Amazon like advertisement, listing fees, closing fees etc are subject to TDS from seller side. Individual and HUF are not liable to deduct any TDS.
Sellers other than Individual and HUF need to calculate the TDS thereon for fees charged by Amazon and deposit the same to Government. Government credits it to Amazon. Sellers are not payer of the original amount and hence they have no way to “deduct” the amount from Amazon. To get the reimbursement they have to send the Form 16A quarterly to Amazon. Amazon claims it from Government.
However, wef December, 2023, sellers are not required to deduct TDS on market fees. This is covered under “Which service fees are not subject to TDS?” in the link.
Seller_lFg7VUzl8pJZA
@Noor_Amazon_
There is a technical mistake in your post.
The first part of the post is related to TDS deducted from sellers. But the link you provided is related to TDS on Amazon.
There are two types of TDS:
1. Deducted by Amazon from seller account on sales.
As per Section 194O Ecommerce Operator (Amazon in our case) shall deduct TDS @ 0.1% (Previously 1%) of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.
There is exemption applicable to Individual or HUF to extend of Rs. 5 Lakh of annual sale.
Which means Amazon will deduct 0.1 % as TDS on GROSS sales from the seller and deposit the same to Government. Amazon will also file relevant TDS return so that the amount so deducted in transferred to Seller's name in Govt books. The amount so collected in seller's name will be treated as Advance tax against Income Tax payable at the end of the financial year.
As Amazon is the payer, it can deduct the amount from the disbursement of funds. Sellers claim it from Government.
2. TDS deductible by Seller from Amazon on services provided
Services provided by Amazon like advertisement, listing fees, closing fees etc are subject to TDS from seller side. Individual and HUF are not liable to deduct any TDS.
Sellers other than Individual and HUF need to calculate the TDS thereon for fees charged by Amazon and deposit the same to Government. Government credits it to Amazon. Sellers are not payer of the original amount and hence they have no way to “deduct” the amount from Amazon. To get the reimbursement they have to send the Form 16A quarterly to Amazon. Amazon claims it from Government.
However, wef December, 2023, sellers are not required to deduct TDS on market fees. This is covered under “Which service fees are not subject to TDS?” in the link.
Seller_lFg7VUzl8pJZA
@Noor_Amazon_
There is a technical mistake in your post.
The first part of the post is related to TDS deducted from sellers. But the link you provided is related to TDS on Amazon.
There are two types of TDS:
1. Deducted by Amazon from seller account on sales.
As per Section 194O Ecommerce Operator (Amazon in our case) shall deduct TDS @ 0.1% (Previously 1%) of the gross amount of the sale of goods, provision of services, or both made by the e-commerce participant on the platform facilitated by the e-commerce operators.
There is exemption applicable to Individual or HUF to extend of Rs. 5 Lakh of annual sale.
Which means Amazon will deduct 0.1 % as TDS on GROSS sales from the seller and deposit the same to Government. Amazon will also file relevant TDS return so that the amount so deducted in transferred to Seller's name in Govt books. The amount so collected in seller's name will be treated as Advance tax against Income Tax payable at the end of the financial year.
As Amazon is the payer, it can deduct the amount from the disbursement of funds. Sellers claim it from Government.
2. TDS deductible by Seller from Amazon on services provided
Services provided by Amazon like advertisement, listing fees, closing fees etc are subject to TDS from seller side. Individual and HUF are not liable to deduct any TDS.
Sellers other than Individual and HUF need to calculate the TDS thereon for fees charged by Amazon and deposit the same to Government. Government credits it to Amazon. Sellers are not payer of the original amount and hence they have no way to “deduct” the amount from Amazon. To get the reimbursement they have to send the Form 16A quarterly to Amazon. Amazon claims it from Government.
However, wef December, 2023, sellers are not required to deduct TDS on market fees. This is covered under “Which service fees are not subject to TDS?” in the link.
