CBDT gives exemption to power trading from new TDS, TCS norms

The Central Board of Direct Taxes of India (CBDT) has exempted power trading at bourses from new norms on tax deducted at source (TDS) and tax collected at source (TCS).

The CBDT has exempted power trading transactions through online exchanges from the purview of newly imposed Section 194(O) and Section 206C (1H) of the Income Tax Act, 1961. Section 194(O) relates to TDS on e-commerce transactions, while Section 206C (1H) deals with TCS on sale of goods on e-commerce platform. The Finance Act, 2020, had imposed a levy of 1 per cent and 0.1 per cent on all e-commerce transactions above Rs 5 million as TDS and TCS, respectively, with effect from October 1, 2020.

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