What you need to know about taxation on Moonlyte as a Business

TDS taxes taxation Tax deducted at source remittance liability 194-O 194-J
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Tax deduction at source (TDS) on remittances of freelancer fee from Business users to Moonlyte

As an e-commerce operator, Moonlyte is obliged to deduct tax at source at the rate of 1% on gross amount of fees payable by you to freelancers, whether through the platform or otherwise (Refer Section 194-O of the Income-tax Act, 1961).

We undertake to deduct such tax and issue Form 16A to the freelancers.

In cases where tax is deducted at source under Section 194-O, as above in respect of any transaction, the tax is not deductible under any other provisions relating to TDS [Refer Section 195-O(3) of the Income-tax Act, 1961].

Accordingly, you may not be required to do TDS under either Section 194C or Section 194J or any other section of the Income-tax Act, 1961 while remitting freelancer fee to Moonlyte.

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