S-194-O Payment of certain sums by the e-commerce operator to participant

S-194-O Payment of certain sums by the e-commerce operator to e-commerce participant

Where Sale of goods or provision of services of an e-commerce participant is facilitated by an e-commerce operator through its digital or electronic facility or platform (by whatever name called),

Such e-commerce operator shall, at the time of credit of the amount of sale or services or both to the account of an e-commerce participant or at the time of payment thereof to such e-commerce participant by any mode, whichever is earlier,

Deduct income tax at the rate of 1% of the gross amount of such sales or services or both.

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Explanation

For the purposes of this subsection, any payment made by a purchaser of goods or recipient of services directly to an e-commerce participant for the sale of goods or provision of services or both, facilitated by an e-commerce operator, shall be deemed to be the amount credited or paid by the e-commerce operator to the e-commerce participant and shall be included in the gross amount of such sale or services for the purpose of deduction of income-tax under this sub-section.

No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of an e-commerce participant, being an individual or HUF, where the gross amount of such sale or services or both during the previous year does not exceed Rs. 5 Lakhs and such e-commerce participant has furnished his PAN/ AADHAAR to the e-commerce operator.

A transaction in respect of which tax has been deducted by the e-commerce operator or which is not liable to deduction under this section, shall not be liable to tax deduction at source under any other provision of this Chapter.

For the purposes of this section, the e-commerce operator shall be deemed to be the person responsible for paying e-commerce participants.

5 Mistakes to Avoid while Filing your Income Tax Returns!

electronic commerce means the supply of goods or services or both, including digital products, over a digital or electronic network;

e-commerce operator means a person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

e-commerce participant means a person resident in India selling goods or providing services or both, including digital products, through the digital or electronic facility or platform for electronic commerce;

services include “fees for technical services” and fees for “professional services”, as defined in the Explanation to section 194J.

Fix issues with the Income Tax e-filing portal by September 15, 2021: FM to Infosys

Fix issues with the Income Tax e-filing portal by September 15, 2021: FM to Infosys

The Finance Ministry met with Infosys to discuss issues with the Income Tax Department’s e-filing portal.

Smt. Nirmala Sitharaman, Union Minister for Finance and Corporate Affairs, met with Mr Salil Parekh, MD & CEO, Infosys, here today afternoon to express the Government’s and taxpayers’ deep disappointment and concerns about the ongoing glitches in the Income Tax Department’s e-filing portal, even two and a half months after its launch, which was also delayed. Smt. Sitharaman demanded an answer from Infosys for the taxpayers’ ongoing problems.

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The Ministry of Finance emphasised the necessity for Infosys to invest more resources and effort in order to assure the much-delayed delivery of agreed-upon services. Mr. Parekh was also made aware of the challenges faced by taxpayers, as well as the issues that have arisen as a result of the portal’s slow operation.

The Finance Minister demanded that the team overcome the challenges that taxpayers are having with the portal’s present features by September 15, 2021, so that taxpayers and professionals may work together effortlessly on the platform.

India’s exposure to US securities has increased by more than 10pc in the last 3 months 

Mr. Parekh stated that he and his staff are doing all possible to ensure the portal’s flawless operation. Mr. Parekh further stated that around 750 team members are working on this project, which is being directly overseen by Mr. Pravin Rao, Infosys’ COO. Mr. Parekh also stated that Infosys is working quickly to ensure that taxpayers have a smooth experience on the platform.

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E-commerce policy in six months

E-commerce policy in six months; to address the privacy of data and tax issues

On the issue of a possible regulator of the sector, the Minister of Trade said that it would depend on whether the policy needed legislative requirements, new regulations or laws already in place. The Government has announced that an e-commerce policy framework will be developed within the next six months.

The comprehensive policy is expected to focus on all aspects of e-commerce and consumers. It will include the privacy of data and taxes, regardless of a range of technical aspects such as technology transfer, server localization, and communication issues.

E-commerce policy

Trade Minister Rita Teaotia said on Tuesday that a large number of ministries, key players in the industry and a number of regulators, including India’s Competition Commission and the Telecommunications Regulatory Authority of India, would participate in policy formulation. The Thought Committee in charge of policy formulation held its first meeting on Tuesday.

On the issue of a possible regulator of the sector, Tiotia said it would depend on whether the policy needed legislative requirements, new regulations or laws already in place. A task force will now be formed and is expected to make recommendations to e-commerce. Tank within five months. On the other hand, the Research Center will temporarily have a month to finish the framework.

Flipkart,  Amazon, Paytm, etc 

Major e-commerce companies such as Flipkart,  Paytm’s main portfolio, and the MakeMyTrip service provider came out at full strength on Tuesday at a stakeholder consultation meeting. Apart from the privacy of the data, most companies were frank about the taxes and claims that were filed against them by mask and mortar retailers on the issue of excessive discounts being offered.

The debate was quite clear that the discount and the fact that stocks were not allowed, either directly or indirectly, were not allowed by online markets, but there is obviously a lot of concern about whether this is being implemented effectively or No, and if not, what will be done about it.

The e-commerce policy may not go hand in hand with India’s arguments about e-commerce in the World Trade Organization (WTO), a senior Commerce Ministry official said. Over the past two years, developed countries have consistently pushed forward a proposed set of global e-commerce rules. India argued that the move would lead to the exclusion of discussions on food security and other development-related issues of concern to developing countries.

However, the domestic e-commerce industry has also remained cool for the proposal, fearing that the new rules could provide an excuse to enter the unfair duty market to foreign companies.

Since this is an agenda driven by the World Trade Organization, our proposal was that access to data, platforms, and markets in India must be reciprocal. The Indian open market, in some way, Big for global companies, but the same may not be true for local companies.