Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Direct Tax »
Open DEMAT Account in 24 hrs
 GSTR-3B deadline expired: File now to avoid input tax credit loss, GST registration cancellation
 ITR Filing: Income tax department shortens time limit for condonation of delay What it means for taxpayers
 CBDT launches campaign to intimate taxpayers on undeclared foreign assets in ITR
 ITR AY2024-25: CBDT launches campaign for taxpayers to report income from foreign sources
  CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
 CBDT weighs overhaul of designations for income tax officials to secure better clarity
 Direct tax-GDP ratio at millennial high in FY24
 CBDT comes out with FAQs on Direct Tax Vivad se Viswas scheme 2024
 Tax filing: How to choose the right ITR form
 Income Tax Return: How to maximise your tax refunds while filing ITR?
 Last date for filing income tax return (ITR)

New TDS/TCS Rules Not for Power Trading, Insurance Agents
October, 20th 2020
The government has exempted power trading transactions from the purview of tax deducted at source (TDS) and tax collected at source (TCS) to prevent practical difficulties in implementing the levy from affecting functioning of the exchanges.
Get Moneylife's

The Finance Act, 2020 inserted a new section 194-0 in the Income Tax Act 1961 which mandated that from 1st October, an e-commerce operator shall deduct income-tax (I-T) at the rate of 1% of the gross amount of sale of goods or provision of service or both, facilitated through its platform. Also, a sub-section (1H) in Section 206C of the Act was inserted that mandated deduction of a sum of 0.1% on all e-commerce transactions above Rs50 lakh.
 
The central board of direct taxes (CBDT) has now exempted transactions in securities and commodities, traded through recognised stock exchanges or cleared and settled by the recognised clearing corporation, including recognised stock exchanges or recognised clearing corporation located in International Financial Service from this levy.
 
Also, all transactions in electricity, renewable energy certificates and energy saving certificates traded through power exchanges will also be exempt from the new tax.
 
It has been represented that there are practical difficulties in implementing the provisions of TDS and TCS in case of certain exchanges and clearing corporations. "It has been stated that sometime in these transactions there is no one to one contract between the buyers and the sellers," a CBDT circular announcing the exemptions said.
 
On the same principle, the CBDT has also exempted insurance agents from deducting TDS/TCS on any transaction involving the insurance company and the buyer in the subsequent years of a policy, except the first year when the policy is bought. But even in subsequent years, the insurance company would be liable to deduct the tax on commission paid to agents.
 
The provisions on TCS will also not apply on sale consideration received for fuel supplied to non-resident airlines at airports in India.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2025 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting