India: Guidelines for withholding tax on e-commerce transactions
Central Board of Direct Taxes (CBDT) guidelines under section 194-O in the Income-tax Act 1961
Central Board of Direct Taxes (CBDT) guidelines under section 194-O in the Income-tax Act
The Central Board of Direct Taxes (CBDT) issued another set of guidelines under section 194-O in the Income-tax Act 1961, which was introduced by the Finance Act, 2020 and provides that an e-commerce operator must withhold tax at the rate of 1% of the gross amount of sale of goods or provision of service or both, facilitated through its digital or electronic facility or platform.
Read a January 2024 report [PDF 313 KB] prepared by the KPMG member firm in India
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