[India] AIC Submits Comments to address concerns of non-resident e-commerce operators on the provisions for Tax Deducted at Source under section 194-O of the Income-tax Act (June 2020)

Download: [India] AIC Submits Comments to address concerns of non-resident e-commerce operators on the provisions for Tax Deducted at Source under section 194-O of the Income-tax Act (June 2020)

The Asia Internet Coalition (“AIC”) is an industry association that represents leading global internet companies on matters of public policy. To further its mission of fostering innovation, promoting economic growth, and empowering people through the free and open internet, AIC would like to take this opportunity to raise our concerns regarding the recently enacted Finance Act 2020 which expands the scope of the equalisation levy, which stands to directly and significantly impact a wide range of SMEs, start-ups and end-consumers in India. Further the Act also imposes new measures on Tax Deducted at Source (TDS) on E-commerce transactions and provisions on Tax Collected at Source (TCS).

AIC has been actively engaging with the Government of India on several policy issues and has contributed to policy dialogues and development to promote the country’s digital economy. In the past we have submitted key recommendations on best practices, particularly on data protection, cybersecurity, e-commerce and taxation, and we appreciate our continued engagement with the government on the policy making process.

Against the backdrop of digitalization and growth of digital services across the world, and increasing role of internet companies, we are submitting this letter to express our views and recommendations on the TDS on E-commerce transactions (Section 194-O) and Amendments under Section 206C on TCS, which were introduced in the Finance Act 2020.