Ola not obligated to deduct tax at source on payment to driver: ITAT

Tribunal says Ola is a mere intermediary; its role is limited to managing OLA app, facilitating transport services by the driver to the rider and payment collection via e-wallet on driver's behalf

An income tax tribunal has held that transport aggregator Ola is not required to deduct withholding tax on payments to drivers. The Chandigarh-based income tax appellate tribunal (ITAT) held that Ola acts as a mere intermediary.

ITAT observed that the role of Ola is limited to managing and operating the OLA app, facilitating the provision of transport services by the driver to the rider and payment collection via e-wallet on the driver's behalf.

It said the driver is solely liable for any accident/incident involving the vehicle while providing taxi services, and Ola has been stated not to be liable for