E-commerce operators making payment to resident e-commerce participants in relation to sale of goods or services or both facilitated through its digital or electronic facility or platform.

• E-commerce operators should deduct @1% TDS on the gross amount of sales of goods or services or both facilitated by e-commerce operators through digital or electronic platform to the participants.
• If the deductee does not provide the PAN or Aadhar, then TDS shall be deducted at the rate of 5%.

TDS shall be deducted at the time of credit of the amount to the account of an e-commerce participant or at the time of payment or payment directly made by buyer to e-commerce participant, whichever is earlier.

• This section is not applicable on non-resident ecommerce participants. Provisions of Section 195 will be applicable on non-resident e-commerce participant.
• An e-commerce operator is not required to deduct TDS if the amount, paid or credited to Individuals/HUF during a financial year, does not exceed Rs. 5 lakh and also such participant has furnished his PAN or Aadhar No. to the e-commerce operator.