AntiqueMasters.com is an online portal that provides e-auction for antique items like coins, artifacts etc. and operates only in India. The owners…

CA Final · Direct Tax Laws and International Taxation · PYQS · May 2025
AntiqueMasters.com is an online portal that provides e-auction for antique items like coins, artifacts etc. and operates only in India. The owners list their items on the portal and interested buyers place bids for them on the portal itself. The portal provides the details of the buyers who make the top 3 bids. The seller chooses the buyer and intimates the portal. The portal takes money from the buyer and transfers the amount to the seller's bank account after deducting the agreed commission. The seller then delivers the item directly to the buyer's address. What will be the TDS obligations on the portal with respect to a sale amounting to 11 lakhs made by Mr. Sonu, an Indian resident, on the portal on 28th February 2025?

Suggested Answer and Working Notes:

As per section 194-O, AntiqueMasters.com, an e-commerce operator, is required to deduct tax at source @0.1% on 11,00,000, being the gross amount of sale of products of Mr. Sonu, an e-commerce participant, since such sale of goods is facilitated by AntiqueMasters.com through its digital facility. Thus, AntiqueMasters.com is required to deduct tax of 1,100, being 0.1% of 11,00,000.

Topics: Deduction, Collection and Recovery of Tax

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic