CBDT provides that the rules that mentioned that there shall be no TDS beneath section 194-O of the income tax act are needed on e-auction services.
Through several stakeholders, the board has obtained representatives who are engaged in the business that poses e-auction services via an electronic portal owned, operated, or maintained by e-auctioneer. In the e-auction, the e-auctioneer engaged in performing the e-auction via its portal is in charge of only the cost determination for the sale or buy of goods or services and the report is allotted to the customer. The customer can be the buyer or the seller. The participants in the auctions are the sellers of the customer is the purchaser or buyers if the customer is the seller. The transaction of the sale or buy functions is performed between the purchaser and the seller that is not completed via the electronic portal of the e-auctioneer. Moreover, the cost found can be negotiated amid parties excluding the knowledge of the e-auctioneer. In that case, it has been shown that provision 194-0 of the act is not applicable as the transaction of the sale or buy itself is not availed from the electronic portal.
The price found via e-auction is not the price at which the transaction is performed. Sub-section (IA) of section 206C of the act furnishes that notwithstanding anything in sub-section (I) of the mentioned section said that for the case of the purchaser there is no tax is to be accumulated for the case of the purchaser who lives in India, if these purchaser files to the individual responsible for accumulating the tax then a declaration to the effect that the goods mentioned in sub-section I am practised for the intention of manufacturing, processing or towards the goal of generating the power and not specific to the trading goals.
Under the act of sub-section (IH) of section 206C of the Act, the tax is needed to get collected towards the goods sale excluding the goods that have not come beneath sub-section (I) or sub-section (IF) or sub-section (IG). this is shown that towards the concern of products which comes beneath the provisions of sub-section (I) of the said section but exempted under sub-section (IA), the tax shall not be able to obtain beneath sub-section (I) or sub-section (IH) of section 206C under the provisions of sub-section (IH) as per the class, not including the goods that are covered beneath sub-section (I) of section 206C. It is urge mentioned that if section 194Q of the act is liable to apply for the mentioned cases.
The problem has been found out. the provision of section 194Q of the Act does not apply towards those transactions in which the tax received beneath section 206C [except sub-section (IH) thereof of the Act. Since by virtue of sub-section (IA) of section 206C of the Act, the tax is not needed to be obtained for the goods obtained beneath sub-section (I) of the mentioned sedition in these cases the section 194 Q shall be applied and the buyer is subjected to deduct tax beneath the section when the conditions provided are suited.
There are representatives from the central and union government to find out that if this department is needed to deduct the tax beneath the provision of section 194Q of the act. The board said that any individual like public sector undertaking or corporation made beneath the central or state act or any additional council or head is needed to comply within the provision of section 194Q and the tax will be deducted as per that.
