Big relief for e-commerce firms: Tax collected at source provision deferred to a later date

NEW DELHI: The government has said provision relating to tax deducted at source and tax collected at source will kick in only from a date that will be notified later, giving relief to Ecommerce players who will not have to collect tax on payments to vendors from July one post goods and services tax roll out.

"The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later," an official statement said on Monday.

Persons supplying goods or services through electronic commerce operator liable to collect tax at source would not be required to obtain registration immediately, it said.

This step has been taken to provide more time for persons liable to deduct tax at source / E- Commerce Companies and their suppliers to prepare for the historic tax reform, the statement said.