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

Meera Handicrafts, a partnership firm, sold goods worth Rs 8,00,000 during the tax year through the platform of ShopBazaar Ltd, an e-commerce operator. Customers paid Rs 6,00,000 to ShopBazaar, which credited it to Meera. Customers paid the other Rs 2,00,000 directly to Meera. Under the Income-tax Act, 2025, what is the tax ShopBazaar must deduct?

Tax of Rs 800 must be deducted. Direct payments by customers to the participant are deemed paid by the operator and added to the gross amount, giving Rs 8,00,000. At 0.1% under serial 8(v), the deduction is Rs 800, not Rs 600.

  1. ARs 600
  2. BRs 800Correct
  3. CRs 8,000
  4. DRs 6,000

Explanation

Note 3(b) to serial 8(v) deems payments made directly by purchasers to the participant to be paid by the operator, and includes them in the gross amount. Gross amount = 6,00,000 + 2,00,000 = Rs 8,00,000, and 0.1% of that is Rs 800. Rs 600 wrongly leaves out the direct payments.

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