Selling online on any platform need utmost attention towards statutory compliances. If you are selling on Flipkart and the provisions of TDS are applicable to your business then here is an update on Tax deduction at lower rates for the financial year 2022-23. Flipkart has issued a Lower Deduction Certificate (LDC) for FY 2022-23.
Flipkart has obtained this Lower deduction certificate from their assessing officer in relation to a particular TAN i.e., LDC is issued based on the TAN of the online seller. It is TAN based specific certificate which means it is not mandatory that all the online sellers on Flipkart will be issued a Lower Deduction Certificate (LDC) for FY 2022-23.
CPC TDS department will intimate the TAN holder i.e., the online seller about the Lower Deduction Certificate (LDC) for FY 2022-23 issued on their respective TAN through SMS and email.
If you are new to this concept and don’t know how to download the Lower Deduction Certificate (LDC) for FY 2022-23 for Flipkart. Click Here to know the procedure to download the Lower Deduction Certificate (LDC) for FY 2022-23.
All about TDS – Tax Deducted at Source
What is the implication of the Lower Deduction Certificate (LDC) for FY 2022-23?
Online sellers need to consider the following information for deduction of tax at source and while filing their TDS returns for the respective quarters of FY 2022-23:
| S.No | LDC Head | Remarks |
| 1 | Certificate Number | The certificate number mentioned under the Lower Deduction Certificate (LDC) for FY 2022-23 will be required while filing the TDS return for the respective quarters. It is mandatory to mention the certificate number so that department can verify the lower deduction rate with this certificate. In cases where the online seller forgot or make some clerical mistake while filing the TDS return, the TAN holder will receive the intimation regarding short deduction/non-deduction of TDS as per the Income tax rates. In those cases, the rectification of the TDS return is to be filed with the correct certificate number. |
| 2 | PAN | The PAN of the deductor is required while filing the TDS return. |
| 3 | Section 194C | Section 194C is for the payments to contractors/ sub-contractors. Online sellers are required to consider the limits under the said section and LDC for the purpose of correct deduction and payment of tax at the source. |
| 4 | Limit (Amount) | This limit or Amount specified under the specific section is the threshold limit to be considered for the respective lower deduction rates. The time this limit crosses the LDC, the regular tax rates as specified under the Income Tax will apply. |
| 5 | Certificate Rate | This is the rate to be applied throughout the valid period up to the limit specified under the Lower Deduction Certificate (LDC) for FY 2022-23. Thereafter, the regular Income tax rates will be applicable. |
| 6 | Valid from and to date | This means the Lower Deduction Certificate (LDC) for FY 2022-23 is valid from a specific date to a specific date both dates included. Any Tax commission invoices/Credit Notes/ Debit Notes issued before or after the specified time limit will not be considered while calculating the tax at these lower rates. |
How to download Lower/ Nil TDS Certificate from TRACES
TDS Rates applicable for financial year 2022-2023 in case you are a registered seller on Flipkart and Flipkart has issued LDC based on your TAN:
| Period/ Section | 24th May to 26 September 2022 | 27th September 2022 to 31 March 2023 |
| 194A | 2 | 0.05 |
| 194C | 0.5 | 0.05 |
| 194D | 2 | 0.10 |
| 194H | 1 | 0.05 |
| 194I(b) | 2 | 0.10 |
| 194JA | 0.5 | 0.10 |
| 194JB | 2 | 0.10 |
 for the financial year 2022-23. Do not pay more if you do not have to.){kind=link}