Income tax department exempts e-auctioneers from 1% TDS

The department clarified that when these taxes are separately disclosed on invoices, then they have to be deducted before calculating the TDS

The income tax department has exempted e-auctioneers from tax deducted at source (TDS) imposed at the rate of one per cent on e-commerce platforms, subject to certain riders.

The department issued a circular to clarify this position since the e-auctioneer conducts e-auction services for its clients in its electronic portal and is responsible for the price discovery only which is reported to the client.

However, an e-auctioneer has to satisfy certain conditions to get the exemption such as -- the sale and purchase takes place directly between the buyer and the seller outside the electronic portal maintained by the auctioneer