Tds Deduction Section

As we all know that from 1 10 2020 section 194 o is going to apply for payment made by e commerce operator to e commerce participant is required to deducted tds as per provision of section 194 o.

Tds deduction section. When provisions of section 194c of the income tax act gets attracted the deductor is required to deduct tds at the following rates however in case the pan is not furnished the deductor would be liable to deduct tds 20 i e. According to the income tax act 1961 a specific amount is reduced when a certain payment like salary commission rent interest professional fees etc. Payment of commission not being insurance commission brokerage contractual fee professional fee to a resident person by an individual or a huf who are not liable to deduct tds under section 194c 194h or 194j.

Section states that where sale of goods or provision of services of an e commerce participant is. Starting from october 1 2020 taxes are required to be collected or deducted on transactions of some goods and services as the finance act 2020 has widened the scope of section 206c of the income tax act 1961 which deals with the collection of tax at source tcs to cover within its ambit transactions of foreign remittance through liberalised remittance scheme lrs selling of overseas. The person who makes the payment deducts tax at source and the person who receives a payment income has the liability to pay tax.

At the maximum marginal rate.