2. What is Tax Deducted at Source (TDS)
• As per the Income Tax Act, a person (deductor) who is liable to make a payment of a specified nature to
any other person (deductee) shall deduct tax at source and remit the same into the account of the Central
Government. The deductee, from whose the income tax has been deducted at source, would be entitled to
get the credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the
• Form 16A will be provided by your CA.
• TDS is filed on a Quarterly Basis.
4. TDS Submission Process
Documents required to raise TDS reimbursement claim -
Please share Form 16A along with the Commission Invoice Number against which you have submitted the
The Commission Invoice is shared on your registered email ID by the 5th of every month for the sales
made in the last month. You can refer it to pay the TDS amount.
Note - TDS is to be paid only against the ‘Taxable Value’ column in the commission invoice and not to be paid for the
GST component mentioned separately
Processing Time -
Once all the details by the merchant for TDS reimbursement have been shared with us, we will validate
the details shared by you and will reimburse the TDS amount within 25 working days, if all details shared
by you are found to be correct.
In case of any discrepancy, we will update you the same within the next few days.
5. TDS Submission Process
The following rates are applicable for TDS submission-
1. Marketplace Marketing Fee @ 5% (Under Section 194H - Income Tax Act)
2. Marketplace PG Fee @ 5% (Under Section 194H- Income Tax Act)
3. Marketplace Logistic Charge (Fee) @ 2% (Under Section 194C- Income Tax Act)
4. Fulfilment Center Services @ 2% (Under Section 194C- Income Tax Act)
6. You need to file the TDS on behalf of Paytm e-commerce (as mentioned on the commission invoice) instead of
In case the TDS amount* does not match the details available in our system, kindly share the correct TDS
certificate along with the correct Commission Invoice Number to process the reimbursement. In short, the TDS
Amount calculated must match the Amount mentioned in the TDS Certificate for releasing the Reimbursement.
Note -TDS amount = Total Amount [Marketing Fees + PG Fee + Logistic Charge (Fee) + Fulfillment
Center Charge( if applied)] of one Quarter.
TDS Submission Process