GST/TDS Details for Tutor Partner

Overview of TDS under Section 194O

TDS refers to Tax deducted at source- Under TDS provisions one new section i.e. Section 194O was introduced on 1 October 2020. According to Section 194O, an e-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an e-Commerce participant. 

E-commerce operator (in this case UrbanPro)- is a person who owns, operates, or manages a digital/electronic facility for the sale of goods and services(i.e. facilitating the use of a platform in this case the website www.urbanpro.com)

E-commerce participant (in this case Tutors)- is a person who sells goods, services, or both through an electronic facility provided by an e-Commerce operator.( in this case giving online tuition services is classified as sell of services by tutors)

Scope of Section 194O

E-Commerce operators should deduct TDS @1% if the tutor earnings from the platform has crossed the ceiling limit of INR 5 lac in the financial year. To check the ceiling limit of INR 5 lac the tutor's gross earnings will be considered i.e. including UrbanPro share.. 

Let’s take an example where the Student paid a total fee of INR 5000, out of which UrbanPro charges INR 1200 and Tutor earnings is INR 3800. In this case, to check whether the Tutor crossed the INR 5 lac ceiling limit, amount of INR 5000 (total fee) will be considered. 

Once the ceiling limit of INR 5 lac is crossed, the deduction for TDS @1% should be done at the time of credit of the amount of sale of goods/services (in this case at the time of settlement to tutor account) to the account of an e-commerce participant. Below is the example of TDS deduction for your better understanding

If you expect your earnings to cross INR 5 lac on UrbanPro, and would like UrbanPro to deduct TDS even before the INR 5 lac limit is reached, please contact the support team- http://urbanpro.com/contact

TDS Certificate

The deductor (in this case, UrbanPro) will issue a TDS certificate to the tutor within 20-25 days of TDS return filing.  For example, for April’22 to June’22 quarter, the TDS return filing date is 15th July and the TDS certificate will be available by 31st July and the same will be shared with tutors within 5-7 working days i.e. 7th August 2022. 

Alternatively, tutor can also check the TDS deducted and deposited on their behalf by following the below steps:

Following are the steps to check TDS Credit in Form 26AS:

Step 1:: Visit income tax website https://incometaxindiaefiling.gov.in/

Step 2: Register and Login to the portal

Step 3: Go to ‘My Account’ tab and click on view Form 26AS (Tax Credit)

Step 4: Select year and PDF format to download the file and proceed further.

Step 5: Open the downloaded file.

The password to open this file is your date of birth mentioned on you PAN, e.g. if your birth date is 1st January, 1990 then your password will be 01011990

Step 6: After opening Form 26 AS you will get information regarding total income on which TDS is deducted and TDS credited to your account