• GST and Accounting query on IT services provided by us

Need some consultation for marketplace website accounting and GST
Asked 13 days ago in GST

Hi Sir,

Can you please brief with your query

As a part of control system, we will not be able to communicate outside taxfull


Shubham Bansal
CA, Amritsar
22 Answers

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Dear Sir,


Hope you are doing well !!


We may assist you in entire procedure.


It is advisable to take a phone consultation for detailed discussion.


You can contact us through Taxfull.



Payal Chhajed
CA, Mumbai
4896 Answers
91 Consultations

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You can raise your query over here as Q&A or else take a phone consultation through taxfull.



CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2517 Answers
8 Consultations

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You may contact us personally.

Lakshita Bhandari
CA, Mumbai
5245 Answers
351 Consultations

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Please book a consultation with me. I handle accounting and advisory for IT service providers and maintain accounting for them also.

Ruchi Goel Anchal
CA, Gurgaon
404 Answers
2 Consultations

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You need to take phone consultation for detail discussion.


Karishma Chhajer
CA, Jodhpur
2272 Answers
15 Consultations

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Dear Sir,


Here are the compliances applicable to Marketplace in India:


1. GST-TCS as per GST Act:

GST-TCS means tax collected as a source as per the GST Act. As per section 52 of the CGST Act, 1% of the sale amount (Sale Price excluding GST) transferred to sellers should be deducted as GST-TCS and paid to the GST department on seller’s behalf. 

2. TDS as per Income Tax Act:

As per the Finance Act 2020, section 194O was introduced to impose TDS liability on e-commerce operators. From 1st October 2020 onwards, every e-commerce must deduct 1% TDS on the gross amount transferred to the seller for providing goods services through the e-commerce platform. 


Above provisions are specifically applicable to Marketplace in India. Apart from these various other compliances in GST and TDS are also applicable.


In regard to Accounting:

Accounting of E-commerce companies are guided by the Accounting Standard issued by ICAI and notified by the Ministry of Corporate Affairs. Accounting standard 9 “Revenue Recognition” and Indian Accounting Standard 115 “Revenue from contracts with customer” will be applicable for E-commerce companies to recognize the revenue. As of now, there is no specific accounting standard issued by ICAI for “Accounting for E-commerce”. Recently an Exposure Draft is issued by ICAI specifically for “E-commerce accounting” meaning thereby a separate standard or guidance note can be expected soon.


Thanks and Regards 

Divya Chugh



Divya Chugh
CA, Delhi
178 Answers
1 Consultation

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