DeeptiWhat is Tax Collection at Source (TCS)?
The e-commerce operator is required to collect an amount calculated at the rate not exceeding one percent of the net value of taxable supplies made through it, where the consideration with respect to such supplies is to be collected by such operator. The amount so collected is called as Tax Collection at Source (TCS).
It is very common that customers of e-commerce companies return goods. How these returns are going to be adjusted?
An e-commerce company is required to collect tax only on the net value of taxable supplies. In other words, value of the supplies which are returned are adjusted in the aggregate value of taxable supplies.
What is meant by “net value of taxable supplies”?
The “net value of taxable supplies” means the aggregate value of taxable supplies of goods or services or both, other than the services on which entire tax is payable by the e-commerce operator, made during any month by all registered persons through such operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month.
Is every e-commerce operator required to collect tax on behalf of actual supplier?
Yes, every e-commerce operator is required to collect tax where consideration with respect to the supply is being collected by the e-commerce operator.
At what time should the e-commerce operator make such collection?
The e-commerce operator should make the collection during the month in which supply was made.
What is the time within which such TCS is to be remitted by the e-commerce operator to Government account?
The amount collected by the operator is to be paid to appropriate government within 10 days after the end of the month in which amount was so collected.
You may contact the author for further information at taxwizersconsultant@gmail.com
Disclaimer: The above article is only for information purpose and is on based on the author’s interpretation of the relevant provision. The same should not be considered as professional advice.
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