India

India does not have a regime directly analogous to DAC7 or the OECD MRDP; instead, for e-commerce platforms the key reporting obligation is Tax Deducted at Source (TDS) under Section 194O of the Income Tax Act, effective 1 October 2020, first reporting via Form 26Q due 31 January 2021. [Central Board of Direct Taxes, Circulars; tax commentary]
This guide covers how Section 194O operates in practice: scope, registration, reportable activities, exclusions, deadlines and counterpart considerations.

Who must register and report in India

E-commerce operators that facilitate sales or services must register as TDS deductors under Section 194O.
Key points:

• An e-commerce operator (ECO) is a person who owns, operates or manages a digital or electronic facility or platform for sale of goods or provision of services (including B2B or B2C marketplaces).

• ECOs must register for a TAN (Tax Deduction Account Number) and link it with their PAN.

• The obligation arises from 1 October 2020; first Form 26Q filing was due 31 January 2021.

• ECOs must deduct TDS from payments to resident sellers (e-commerce participants) under applicable conditions.

• “Consideration” is the gross amount paid or credited to a seller (including commissions, shipping, convenience fees) before deduction, or at the earlier of credit or payment.

• ECOs file Form 26Q (quarterly TDS return) and issue Form 16A (TDS certificate) to sellers.

• ECOs coordinate with the TDS / tax authority (Income Tax Department) via the TRACES / TDS portal.

Excluded platform operators for India

Some operators are excluded or exempt from being required to register under Section 194O:

• Entities selling their own goods or services (not facilitating third-party sellers).

• Platforms functioning purely as advertising, referral, or payment gateways, without any facilitation of sale or payout.

• If multiple ECOs exist, only the ECO that actually makes the payment to the seller is liable to deduct TDS.

• Stock exchanges / commodity / power exchanges (where distinct exchange framework applies).

DAC7 registration of platform operators in India

India does not have a DAC7-style registration system; compliance is via TDS processes under domestic law:

• ECOs must register for TAN (if they don’t already have one) and ensure TDS / withholding setup.

• Provide business identification (PAN, address, legal entity details) in TAN application.

• ECOs must maintain internal records and due diligence to identify resident sellers and ensure correct deduction.

• ECOs may rely on seller-provided PAN/Aadhaar / declarations for threshold/testing (e.g. the ₹5 lakh threshold for individuals).

• All records (transaction logs, deduction proofs, certificates, communication) should be retained (statutory records under Income Tax law).

• Filing / submission is via TDS / TRACES portal (electronic).

• No automatic information exchange is built into this regime; the focus is domestic tax enforcement.

Types of activities that must be reported for online platforms in India

Activity type	Description	Examples	Notes / thresholds
Sale of goods	Facilitation of sale of tangible goods	Online marketplace sales of products	Subject to TDS under Section 194O
Sale of services	Facilitation of services, digital or offline	Consulting, delivery, creative services	Subject to TDS under Section 194O
Booking accommodation / travel	Platforms facilitating bookings or travel services	Hotel booking, travel platform services	Treated as services under 194O
Other third-party services	Any other services facilitated via platform	Repair services, gig work, etc.	Subject to same TDS rules

• ECOs deduct TDS on the gross amount (i.e. before deducting commission, fees) at the earlier of credit or payment.

• If seller is individual or HUF and total receipts in a financial year ≤ ₹5,00,000 and PAN/Aadhaar furnished, ECO need not deduct TDS.

• If PAN/Aadhaar is not furnished, TDS is deducted at 5% under Section 206AA (instead of the standard rate).

• From 1 October 2024, the TDS rate under Section 194O is reduced from 1% to 0.10% on applicable transactions.

• Non-resident sellers are excluded from deduction under 194O; other withholding rules (e.g. Section 195) may apply.

Excluded sellers in India

Some sellers are not reportable (i.e. no TDS deducted) under Section 194O:

• Sellers whose annual sales/receipts are ≤ ₹5,00,000 (for individuals / HUF) and who have furnished PAN/Aadhaar.

• Non-resident sellers (i.e. those not resident in India).

• Sellers that sell only their own goods via the platform (i.e. not third-party).

• Transactions for which the platform acts merely as an advertiser or referral (no facilitation or payout).

Reporting deadlines for marketplaces in India

• ECOs must deposit TDS deducted by the 7th day of the month following the month in which deduction is made (for March deductions, by 30/31 March or April 30).

• ECOs file Form 26Q quarterly (for non-salary payments).

  • Q1 (Apr–Jun) → due 31 July

  • Q2 (Jul–Sep) → due 31 October

  • Q3 (Oct–Dec) → due 31 January

  • Q4 (Jan–Mar) → due 31 May
    [EZTax; TaxGuru; IndiaFilings]

• ECOs issue Form 16A (TDS certificate) to sellers within 15 days of filing the relevant 26Q return.

• Corrections / amendments may be filed through the TDS portal (subject to portal rules).
  Penalties / interest apply: ₹200/day for late return, interest 1% per month if late deduction, 1.5% per month for late deposit; failure in TAN registration may invoke ₹10,000 penalty.

Form 16A due dates

Form 16A (TDS Certificate) must be issued quarterly:

Quarter	Period covered	Due date for form 16A
Q1	April–June	August 15
Q2	July–September	November 15
Q3	October–December	February 15
Q4	January–March	May 30

Additionally, TDS payment to the government must be done monthly, by the 7th of the following month (e.g., April deductions must be deposited by May 7).

Form 26Q due dates

Quarter	Period covered	Due date for filing Form 26Q
Q1	1 Apr – 30 Jun	31 July
Q2	1 Jul – 30 Sep	31 October
Q3	1 Oct – 31 Dec	31 January
Q4	1 Jan – 31 Mar	31 May

Penalties for Non-Registration or Non-Compliance

Failure to register or comply may result in:

• ₹10,000 Penalty for not obtaining TAN or quoting it incorrectly
• 1% interest per month (or part thereof) for late deduction, and 1.5% per month for late payment of deducted TDS
• Late Filing Fee: ₹200 per day until the return is filed (subject to maximum TDS amount)

List of partner jurisdictions India’s TDS regime under Section 194O is purely domestic; there is no formal partner jurisdiction exchange mechanism akin to DAC7.
However, India does have international tax treaties and information exchange (e.g. under OECD / FATCA / CRS) which may apply in parallel, but not specifically via Section 194O.