NEW DELHI: The Central Board of Direct Taxes (CBDT) on Thursday issued guidelines on deduction of 1% income tax of the gross amount of sale of goods or services by e-commerce companies in a multiple-operator model framework.
An e-commerce operator, as per the Section 194-O of the Income Tax Act, 1961 (‘the Act’), should deduct income tax at the rate of 1 percent of the gross amount of sale of goods or provision of service, or both, facilitated through its digital or electronic facility or platform.
CBDT in a statement, said, “Circular guidelines have been issued for the removal of difficulties and clarity has been provided on various issues on the applicability of the Act in a multiple e-commerce operator model framework, such as the Open Network for Digital Commerce (ONDC).” The circular details of various situations with examples and provides clarity on multiple issues.