TDS RATES
HI,
Can someone lay down all the various amazon expenses for which TDS need to be deducted and also mention the TDS section & Rate under which it is covered.
It would be of great help.
Thankyou.
Adam_Amazon_
Hello @Seller_C6NXR3W718e2i,
Thank you for your post.
I would recommend you visit Tax Deducted at Source (TDS) frequently asked questions help page.
Regards,
Adam
Seller_lFg7VUzl8pJZA
Read this Circular, ciruclar-20-2023.pdf from IncomeTaxIndia, Circular no. 20 dated 28/12/2023.
An email was so received to this effect from Amazon :
"As per Circular No. 20, dated December 28, 2023, that is issued by the Central Board of Direct Taxes (CBDT), fees paid by a seller to an e-commerce operator should not be subject to Tax deducted at Source (income tax: TDS) if such fees are in connection with the main transaction of sale of goods and provision of services and are included in the gross amount on which the e-commerce operator deducts 1% TDS u/s 194-O. Accordingly, marketplace fees, for example listing fees, closing fees, labeling fees, pick and pack fees, giftwrap fees etc. (excluding Advertisement and Multi-Channel Fulfillment fees), may not be subject to TDS. Consult with your tax advisor for implications for your TDS compliance."
Hence, you don't need to deduct TDS on any expenses related to product. Only Advertisement expense should be covered in TDS by you from Amazon.
Consult a CA before taking decision in this regard.
