The operators in the e-commerce business will need to register themselves in each of the state where their suppliers are from for the purpose of deduction of TCS or tax collection at source. Furthermore, as per the CBIC, foreign companies are allowed to appoint an agent on their behalf for obtaining such a registration.
From October 1, e-commerce companies will need to deduct 1% TCS before finally making payments to their suppliers. For the same, the Central Board of Indirect Taxes and Customs (CBIC) has released a list of 29 FAQs that answers industry queries in respect of the modalities that need to be adhered to while deducting TDS by the different e-commerce operators in the market.
E-commerce companies regardless of the fact as to whether or not they are registered under GST as a supplier and have GSTN are required to obtain a separate registration for TCS.
In addition, the amount thus collected has to be deposited with the government within 10 days after the month end in which the collection was made.
"In order to facilitate the obtaining of registration in each State / UT, the e-commerce operator may declare the Head Office as its place of business for obtaining registration in that State / UT where it does not have physical presence," the CBIC said.
TCS collection obligation will fall due in respect of each of the intra-state and inter-state supply.
For other e-commerce players of foreign origin who do not have a business in India but have both suppliers as well as other customers based out of the country, the CBIC has directed these e-commerce players to deduct TCS on such supply and would need to obtain registration in each UT or state.