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Taxability of E-commerce Transactions: Comparison of TDS vis-à-vis Equalisation levy -

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  Overview and comparison of 194O, 165-165A: - There has been prescribed different layers of criteria for determination of taxability with reference to E-commerce related or say digital transactions. We shall have an in-depth discussion of all such provisions and obtain understanding of fact that when which provision be attracted:   Section 194O (Income Tax Act,1961): TDS on certain payment by E-commerce operator to E-commerce Participant –   While any person supplying goods/services/both is enrolled on any e-commerce platform for supply therewith, then e-commerce operator be liable to deduct TDS @ 1%, on gross amount payable by him to such person enrolled as e-commerce participant, in reference to sales conducted via its platform and then only shall he release the net amount of sale proceeds collected from customer, in favor of participant. Such TDS be deducted either at time of credit of such amount to e-commerce participant’s account or at time of actual paymen...
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TDS U/s 194T, Income Tax Act,1961: -

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Deduction of Tax on Payment to Partners of Firm: - Section 194T Income Tax Act,1961 provides that, whereincase any person being a firm, makes any kind of payment to the partner, other than in form of profit share i.e. to say any payment be it in nature of salary, remuneration, commission, bonus or interest, shall at time of credit of such amount or at time of actual payment, whichever be earlier, deduct TDS at the rate of 10%, irrespective of fact that said payment is relating to partner's capital account or  partner's  current account. However, no such deduction shall be made unless and until the amount to be paid in aggregate in a particular financial year to particular partner, does not exceed threshold of Rs. 20,000/-.      The same can be easily understood with the help of below examples: -   1.     M/s. ABC intends to pay Rs. 50,000/- to each of the 3 partners i.e. Mr. A, Mr. B & Mr. C, in nature of remuneration then said fir...
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TDS U/s 194R, Income Tax Act,1961: -

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  Deduction of Tax on Benefit/Perquisite in Respect of Business/Profession: -    Section 194R Income Tax Act,1961 provides that whereincase any person being Individual/HUF who is engaged in any Business with turnover therewith crossing threshold of Rs. 1 Crores in immediately preceding financial year or that, is engaged in any profession having gross receipts therein exceeding threshold of Rs. 50 Lakhs in immediately preceding financial year, then such person be covered within ambit of this section. Further, in case of any assessee other than Individual/HUF, such assessee is by default covered under ambit of this section. Now, if anyone from aforementioned categories of person is giving any benefit/perquisite whether convertible in cash or not, as a part of his/their business/profession to any resident and value of such benefit/perquisite is found to be in excess of Rs. 20,000/- during whole of the financial year under consideration, then the person giving such benefit/pe...
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AUTO-POPULATION OF GSTR-3B – Advisory dated 7th June, 2025

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  A Major step in direction of Automation to curb down willful/mistaken wrong availment of ITC: -         As per GSTN advisory dated 17 th October, 2024 followed by another advisory dated 27 th January, 2025 condoning effect of former advisory relating to locking of liability computation tabs in GSTR-3B as requisited in former. Advisory dated 17 th October, 2024 provides that in an effort to ease down return filing process and to minimize human errors in computation of tax liability and utilizable ITC, GST portal now provides a pre-filled GSTR-3B wherein: a.) Outward Tax-liability details be fetched from outward supplies details furnished by Tax-Payers in GSTR-1/1A/IFF; b.) GST-ITC available to be utilized be fetched on basis of auto-populated GSTR-2B. Further, in case taxpayers have made any mistake in declaring outward supply related details in GSTR-1/IFF, then same could be corrected by GSTR-1A. However, locking of GSTR...
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