E COMMERCE SALES TAX | STARTS FROM OCTOBER | 2020

 E COMMERCE SALES TAX 

The Income Tax (IT) department on Tuesday issued guidelines on the implementation of TCS regulations at the source. Accordingly, sales of goods and services provided by e-commerce operators are exempt from 1 percent income tax. 

It will come into effect from October 1. To that end, the Income Tax Act 1961 brought in the new Section ‘194-O’ of the Finance Act 2020. At the same time, Section 206C also incorporated Subsection (1H). 

Accordingly, if the total sales in any previous year exceed Rs. It will also come into effect from October 1. However, the CBDT has clarified that the newly introduced TCS rules do not apply to securities and commodities transactions through stock exchanges. Power does not apply to transactions made through exchanges. However, market analysts and analysts say that there is still much to be clarified.