What is Tax Deducted at source (TDS)?
Tax Deducted at Source (TDS) is a method of collecting tax at the source of invoice. Under this system, tax is deducted by a person (deductor), who is liable to make the payment of specified nature to any other person (deductee) and remit the same into the account of the Central Government.
Why should I claim TDS?
Every person responsible for making any payment which is covered by TDS provisions of Income Tax Act, 1961,shall be responsible to deduct tax at the rates prescribed under the Income Tax Act, 1961.
A seller is liable to pay commission, fixed closing fee, shipping fees, payment processing charges (PPC) on every item sale and according to the provisions of the act, the seller is liable to deduct TDS on the commission, fixed closing fee, shipping fees, payment processing charges (PPC) and any other marketplace fees paid and remit the amount deducted as TDS in the Central Government;s account. Since such fees paid by the seller is inclusive of the TDS amount, the seller is required to deduct the taxes and deposit the taxes so deducted with the central government. Once the taxes are deposited with the central government, then the sellers can claim for reimbursement of TDS by submitting valid proof i.e form 16A (TDS Certificate) to vedson.
TDS Process can be explained by way of an example:
1. If a sellers revenue by selling on Vedson is INR 1000
2. Vedson charges total Marketplace Fees INR 100 in the form of either commission, PPC, fixed closing fee, shipping charges as may be applicable.
3. Vedson will deduct the fee upfront and remit INR 900 to the seller account.
4. In this case, the seller has paid a service fee of INR 100 to Vedson.
5. Ideally, the seller is responsible to deduct TDS at the rates prescribed under the Income Tax Act 1961. As an example, assuming that TDS rate is 10% on INR 100, the seller will have to deposit INR Rs 10 (i.e 100*10%) = INR Rs 100 in the Government account and pay INR 90 to the Vedson.
6. In the above example, wherein Vedson is charging a marketplace fees of INR 100 out of INR 1000 sales and remitting INR 900 to the seller, the amount retained here by amazon includes the TDS amount as well i.e INR 10.
7. Seller can get this amount INR 10 refunded from Vedson once the seller submits the TDS certificate to Vedson. The TDS certificate is a proof that TDS was paid.
How can I claim TDS from Vedson?
Seller can claim reimbursement of the TDS paid by submitting the relevant TDS certificate with Vedson. You have to contact Vedson Seller Support for reimbursement of the TDS amount and submit a digitally signed PDF copy of for 16A to Vedson and on verification of the mentioned certificate, Vedson will reimburse the TDS amount.
Send TDS Certificate on email - tds.reimbursement@vedson.in to claim TDS from Vedson.
Please check and ensure that form 16A/TDS certificate is eligible and contains Vedson name, address, the amount deducted and Vedson PAN.
Vedson will verify form 16A and if the claimed amount matches the TDS amount (which is included in the marketplace fees charged) as per Vedson records, then Vedson will reimburse the amount to your statement of account.
After successful reimbursement, the refunded amount will be disbursed, in the next settlement payment cucle, into your bank account.
Disclaimer: please note that the information on this page is provided as a general information and does not constitute tax, legal, or other professional advice and must not be used as such. Please consult your professional adviser’s if you have any questions regarding the above.