Proposed Significant Changes related to Tax Deducted at Source (TDS) for e-commerce operators.
In her Budget 2024-25 speech, Finance Minister Nirmala Sitharaman proposed a significant change related to tax deducted at source (TDS) for e-commerce operators. Here are the key points:
1. TDS Rate Reduction:
- The TDS rate for e-commerce operators will be reduced from the existing 1% to 0.1%.
- This move aims to ease the financial burden on e-commerce businesses and promote growth in the sector.
2. Other Proposals:
- The budget also includes other measures, such as merging tax exemption regimes, decriminalizing TDS delays, and reviewing customs duties.
- Additionally, the Equalisation Levy, which was applicable to e-commerce supply of goods or services, will no longer be in effect after 1st August 2024.
3. Boosting E-commerce Exports:
- The establishment of dedicated e-commerce export hubs is announced to enhance online trade.
- India's e-commerce exports currently stand at $2 billion, but the potential for growth is immense. Estimates suggest that by 2030, India's e-commerce exports could reach $350 billion.
This budget proposal reflects the government's commitment to supporting the digital economy and fostering a conducive environment for e-commerce bu
sinesses. 🌐💼📊.
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