Dear Seller,
As you may know that the Finance Act, 2020 inserted a new Section 194-O provides that
- All e-commerce entities facilitating sale of goods or supply of services of e-commerce sellers shall be liable to deduct tax at source (“TDS”) on the gross amount of such sales or services paid or credit to e-commerce sellers. The provisions are effective October 1, 2020.
- The TDS will be applicable for all Indian resident sellers where (i) the gross sales of the goods or services during the financial year is more than INR 500,000 and (ii) PAN (operational) or Aadhaar is provided.
- The TDS rate is 1% on the gross sales of goods or services (0.75% for FY 2020-21 applicable till March 31, 2021). The TDS rate is 5% if seller has not provided PAN or Aadhaar or where the PAN is not operational.
What this means to you?
- TDS charges (basis above rules) for the sales generated in a calendar month will appear in seller’s ‘My eBay Account’ by 8th of the following month. The TDS charges would reflect in the subsequent invoice generated basis seller’s billing cycle.
- For instance, TDS charges of sales generated in month of Oct 2020, will be visible in seller’s “My eBay account” by 8th of Nov 2020. The same would reflect in seller’s invoice generated on
- 15th Nov 2020 for sellers with mid of month billing cycle
- 30th Nov 2020 for sellers with end of month billing cycle.
- Sellers are required to pay the total invoice amount including TDS as mandated by law to enjoy uninterrupted services of e-commerce marketplace.
- Please have your PAN updated in your eBay seller portal to avoid being charged at higher TDS rates.
- Please visit https://sellglobal.ebay.in/payments/tds_faq.html for more details and FAQs
Regards
eBay India CBT team
