Ministry of Finance
CBDT issues guidelines under section 194-O of the
Income-tax Act, 1961
Posted On: 28 DEC 2023 7:58PM by PIB Delhi
Section 194-O of the Income-tax Act, 1961 (‘the Act’) provides that an e-commerce operator shall deduct
income-tax at the rate of one per cent of the gross amount of sale of goods or provision of service, or both,
facilitated through its digital or electronic facility or platform.
Vide CBDT Circular No. 20/2023 dated 28.12.2023 guidelines have been issued for removal of difficulties
and clarity has been provided on various issues pertaining to applicability of section 194-O of the Act in a
multiple e-commerce operator model framework, such as the Open Network for Digital Commerce (ONDC).
The Circular details several types of situations with examples & provides clarity on multiple issues. Having
received representations from various quarters, the CBDT Circular incorporates FAQs on varied issues.
The said Circular is available on www.incometaxindia.gov.in.
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