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

Kisan Mart, an e-commerce operator, facilitated sales of Rs. 12,00,000 for Shree Traders Pvt Ltd during the tax year. Of this, buyers paid Rs. 2,00,000 directly to Shree Traders, and the operator paid Rs. 10,00,000 to it. What is the tax deductible by the operator under section 393(1) Table Sl. No. 8(v) of the Income-tax Act, 2025?

The tax is Rs. 1,200. Payments made directly by buyers to the participant are deemed paid by the operator and are included in the gross amount. The gross amount is Rs. 12,00,000, and 0.1% of it gives Rs. 1,200.

  1. ARs. 10,000
  2. BRs. 1,200Correct
  3. CRs. 12,000
  4. DRs. 2,000

Explanation

Note 3(b) deems direct payments by purchasers to the participant to be paid by the operator and includes them in the gross amount. Gross amount is Rs. 10,00,000 + Rs. 2,00,000 = Rs. 12,00,000, and 0.1% gives Rs. 1,200. Rs. 1,000 would ignore the direct payments, which is the mistake in the Rs. 10,000 option's base.

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