CBDT clarifies applicability of TDS liability for e-retailers

New Delhi: The income tax department has clarified the applicability of TDS liability of e-retailers trading through the government’s open network digital commerce. As per the FAQ issued by the Central Board of Direct Taxes (CBDT) on Thursday, a 1 per cent TDS will have to be deducted from the gross sale amount after including convenience/packaging/shipping fees as charged by e-commerce trading platforms for the order placed on ONDC. As ONDC or Open Network for Digital Commerce is a new initiative of the Department for Promotion of Industry and Internal Trade (DPIIT).