CBDT issues guidelines for e-commerce operators

     New Delhi, December 29, 2023: Central Board of Direct Taxes has issued guidelines for the e-commerce operators for deduction of income tax for sale of goods or provision of service, or both, facilitated through its digital or electronic facility or platform.

     Section 194-O of the Income-tax Act, 1961 provides that an e-commerce operator shall deduct income-tax at the rate of one per cent of the gross amount of sale of goods or provision of service, or both, facilitated through its digital or electronic facility or platform, Union Finance Ministry sources said.

     Vide CBDT Circular No. 20/2023 dated 28.12.2023 guidelines have been issued for removal of difficulties and clarity has been provided on various issues pertaining to applicability of section 194-O of the Act in a multiple e-commerce operator model framework, such as the Open Network for Digital Commerce (ONDC), the sources said.

     The Circular details several types of situations with examples and provides clarity on multiple issues.      Having received representations from various quarters, the CBDT Circular incorporates FAQs on varied issues. The Circular is available on www.incometaxindia.gov.in.