Taxing times no more

Power trading in Power Exchanges exempted from newTDS and TCS under sections 194 (0) and 206 C (1H) of Income Tax Actrespectively.


The Central Board of Direct Taxes ofIndia (CBDT) has exempted power trading transactions through online exchangeslike Power Exchange India Ltd (PXIL) from the newly imposed section 194 (O) – TDS on E-Commerce Transactions, and section 206C(1H) – TCS on Sale of Goods on E-Commerce platform ,of Income tax Act,1961.

The Finance Act 2020 had imposed a levyof 1.0 per cent and O.1 per cent on all e-commerce transactions above `50-lakhs under TDS and TCS respectively witheffect from October 1, 2020. However, it was observed that there were practicaldifficulties in implementation of these taxes in case of power exchanges, likesecurities and commodities transactions traded through recognised stock andcommodities exchanges or cleared and settled through recognised clearingcorporations.

The CBDT vide Circular No 17 of 2020 refNo F. No.370133/22/2020-TPL dated 29th September, 2020, has now clarified thattransactions on power exchanges are exempt from the purview of Section 194 O& Section 206 C(1H) of the act.

NEWS ----------SEPTEMBER 2018 Issue
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