GST and Accounting query on IT services provided by us

Hi Sir,

Can you please brief with your query

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Dear Sir,

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We may assist you in entire procedure.

Hello,

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

Regards,

CA Hunny Badlani

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You may contact us personally.

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

Hi

You need to take phone consultation for detail discussion.

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