Please go through the following email carefully as the information contained herewith may affect your business on Shopsbasket.
This is with respect to the Statutory requirement for Tax Deducted at Source (TDS) u/s 194-O , which mandates e-commerce companies to deduct TDS on sale of goods and services through e-commerce marketplace. This requirement will come into effect from 1 Oct'2020. In view of this new requirement, Shopsbasket, in its capacity as an e-commerce operator, will be deducting TDS on the products and services sold by the sellers on its marketplace.
Please note that the rate of TDS applicable will be 0.75% ( of the base selling price) from October 1 2020 to 31 March 2021 and will be 1% ( of the base selling price) post 31st March 2021.
However, in cases wherein the PAN is unavailable or invalid, TDS at 5% will be applicable. We recommend you to recheck and verify the PAN you have submitted so as to avoid a higher tax rate on your sales.
The TDS will be applicable on the base selling price of the product, for example:
Product Base Selling Price
Product Selling Price
0.75 X 100 = Rs.0.75