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CMA Final · Direct Tax Laws and International Taxation · E-commerce Transaction and Liability in Special Cases

During a tax year, Meera Traders Pvt. Ltd. (a company) sold goods worth Rs. 20,00,000 through the platform of QuickMart, an e-commerce operator. Rs. 15,00,000 was credited by QuickMart and the buyers paid Rs. 5,00,000 directly to Meera Traders for these same facilitated sales. What is the tax deductible under serial number 8(v)?

Tax deductible is Rs. 20,000. Payments made directly by buyers to the participant for facilitated sales are deemed paid by the operator and added to the gross amount. Gross is Rs. 20,00,000, and 0.1% of that gives Rs. 20,000.

  1. ARs. 20,000Correct
  2. BRs. 15,000
  3. CRs. 5,000
  4. DRs. 40,000

Explanation

Under Note 3(b), a payment made by a buyer directly to the participant for facilitated sales is deemed credited or paid by the operator and is included in the gross amount. Gross amount = 15,00,000 + 5,00,000 = Rs. 20,00,000. Tax at 0.1% = Rs. 20,000. Rs. 15,000 wrongly leaves out the direct payments.

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