Article

With the exponential growth of e-commerce, tax authorities have implemented Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) provisions to track online transactions. Under Section 194-O, e-commerce operators must deduct TDS at 1% on the gross amount of sales made by sellers on their platforms. Similarly, under GST, operators must collect TCS at 1% of net taxable supplies.

This article reviews compliance obligations, filing deadlines, and reconciliation challenges faced by online sellers and platform operators alike.