E-tailers into services not to collect TCS; online goods players cry foul

Clarification says no TCS for e-commerce service players up to Rs 2 mn annual turnover

The indirect tax department has clarified that e-commerce companies need not collect one per cent tax collected at source (TCS) from the service providers with an annual turnover of up to Rs 2 million under the goods and services tax (GST) regime, infuriating online players, which have vendors selling only goods.

The Central Board of Indirect Taxes and Customs (CBIC), infrequently asked questions (FAQ) for TCS, said a person supplying services through an e-commerce platform was exempted from obtaining compulsory registration provided his aggregate turnover does not exceed Rs 2 million in a financial year.

“Since such suppliers are not