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A collection of the brief insights throughout November 2021 of the type provided on an ad hoc basis in our Latest digital tax byte update.

30 November 2021 - further India guidance on collection at source mechanisms

India's Central Board of Direct Taxes (CBDT) has issued additional guidelines, exercising the powers given in the respective sections on current collection at source rules, to remove difficulties, based on further representations and enquiries received from various businesses, including the Government.

The CBDT.had earlier issued guidelines in relation to the provisions of sections
194-O [Tax deducted at source (TDS) by e-commerce operator], 206C(1H) [Tax collected at source (TCS) on sale of goods] and 194Q (TDS on purchase of goods) of the Income-tax Act, 1961 (the Act) to remove difficulties arising from the applicability of these provisions and to provide clarity for certain transactions including guidelines on the cross-application of these sections. 

Issues addressed in the current circular include: