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

During the tax year, Rohit, an individual with no business income, sold goods on the platform of BazaarNet Ltd. The gross sales were Rs 4,20,000, and Rohit furnished his Aadhaar number to BazaarNet Ltd. Some buyers paid Rohit directly, amounting to Rs 60,000 of the gross sales, and the rest through BazaarNet. Which statement is correct under section 393?

No tax is deductible. Direct buyer payments are counted within gross sales, giving Rs 4,20,000, which is within the Rs 5,00,000 limit. Rohit is an individual who furnished Aadhaar, so all conditions for no deduction are satisfied and the 0.1% deduction does not apply.

  1. ANo tax deduction is required, since the gross sales of Rs 4,20,000 are within Rs 5,00,000 for an individual who furnished AadhaarCorrect
  2. BTax of Rs 420 must be deducted, since the direct payments are excluded from the limit
  3. CTax of Rs 360 must be deducted on the amount routed through BazaarNet only
  4. DTax of Rs 4,200 must be deducted at 1% on the gross sales

Explanation

Direct payments by buyers are deemed paid by the operator and included in gross sales, so the total is Rs 4,20,000. This does not exceed Rs 5,00,000, Rohit is an individual, and he furnished Aadhaar. All conditions of the no-deduction rule are met, so no tax is deducted. Option B excludes the Aadhaar/PAN and limit conditions incorrectly.

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