Updates for Rising Chartered's

*S-194-O Payment of certain sums by e-commerce operator to e-commerce participant*

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 1% 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.

No deduction 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 HUF, where the gross amount of such sale or services or both during the previous year does not exceed Rs. 5 Lakhs and such e-commerce participant has furnished his PAN/ AADHAAR to the e-commerce operator.

A transaction in respect of which tax has been deducted by the e-commerce operator or which is not liable to deduction under this section, shall not be liable to tax deduction at source under any other provision of this Chapter.

For the purposes of this section, e-commerce operator shall be deemed to be the person responsible for paying to e-commerce participant.

*electronic commerce* means the supply of goods or services or both, including digital products, over digital or electronic network;

*e-commerce operator* means a person who owns, operates or manages digital or electronic facility or platform for electronic commerce;

*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;

*services* includes "fees for technical services" and fees for "professional services", as defined in the Explanation to section 194J.

*TDS on Cash Withdrawals!! All about S-194N of IT Act, 1961*

Payer - Banking Company, Co-op. Society or Post Office.

Payee - Any Person {including NR}

Type of Payment - Cash withdrawn from one or more accounts maintained

Time of Deduction - Payment of cash

TDS Rate - 2 % of amount in excess of limit
Limit > 1,00,00,000 {1 Crore}

Recipient who has not filed R.O.I. for all of the 3 AY’s relevant to 3 PY’s, for which the time limit to file R.O.I. u/s. 139(1) has expired, immediately preceding the PY in which cash is withdrawn. The provisions will be modified as below –

Limit > 20,00,000 {20 Lakhs}
Upto 20,00,000 - No TDS
> 20,00,000 and < 1,00,00,000 - 2% TDS
> 1,00,00,000 - 5% TDS
Effective from On or after 01.07.2020

The limit of Rs 1 crore has to be seen for cash withdrawals made from all branches of a bank.
The cash withdrawals from two different banks shall not be aggregated for the limit of ₹ 1 Crore.

No TDS on payment made to Central or State Government/ Banks/ Co-op. Banks/ Post Office/ Banking correspondents/ ATM operators/ Commission agent or trader, operating under Agriculture Produce Market Committee (APMC)