Section 194O of Income Tax Act "Payment of certain sums by e-commerce operator to e-commerce participant"
194-O. (1) Notwithstanding anything to the contrary contained in any of the provisions of Part B of this Chapter, 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 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 one per cent of the gross amount of such sales or services or both.
Explanation.-For the purposes of this sub-section, 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.
(2) No deduction under sub-section (1) 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 Hindu undivided family,
where the gross amount of such sale or services or both
during the previous year does not exceed five lakh rupees
and such e-commerce participant has furnished his Permanent
Account Number or Aadhaar number to the e-commerce operator.
(3) Notwithstanding anything contained in Part B of this
Chapter, a transaction in respect of which tax has been
deducted by the e-commerce operator under sub-section (1),
or which is not liable to deduction under sub-section (2),
shall not be liable to tax deduction at source under any
other provision of this Chapter:
Provided that the provisions of this sub-section shall not
apply to any amount or aggregate of amounts received or
receivable by an e-commerce operator for hosting
advertisements or providing any other services which are not
in connection with the sale or services referred to in
sub-section (1).
(4) If any difficulty arises in giving effect to the
provisions of this section, the Board may, with the approval
of the Central Government, issue guidelines for the purpose
of removing the difficulty.
(5) Every guideline issued by the Board under sub-section
(4) shall be laid before each House of Parliament, and shall
be binding on the income-tax authorities and on the
e-commerce operator.
(6) For the purposes of this section, e-commerce operator
shall be deemed to be the person responsible for paying to
e-commerce participant.
Explanation.-For the purposes of this section,-
(a) "electronic commerce" means the supply of goods or
services or both, including digital products, over digital
or electronic network;
(b) "e-commerce operator" means a person who owns, operates
or manages digital or electronic facility or platform for
electronic commerce;
(c) "e-commerce participant" means a person resident in
India selling goods or providing services or both, including
digital products, through digital or electronic facility or
platform for electronic commerce;
(d) "services" includes "fees for technical services" and
fees for "professional services", as defined in the
Explanation to section 194J.
What is Fees for professional or technical services? Section 194J of Income Tax Act 1961
What is Income in respect of units? Section 194 K of Income Tax Act 1961
Section 194 LBC Income in respect of investment in securitization trust
Section 194M Payment of certain sums by certain individuals or Hindu undivided family
Section 194N Payment of certain amounts in cash
Section 194O Payment of certain sums by e-commerce operator to e-commerce participant