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How to account for Amazon Lightning Deal Fee

How to deal with the Amazon Lightning Deal Fees Tax Invoice

Are you selling on Amazon? If yes, then you might be interesting in knowing about the important aspects of Lightning Deal Fees.

As we all know that the sellers registered on the Amazon India portal have to register every time for the upcoming Lightning Deal to strengthening their sales volume.

Sellers get what they expected and in return Amazon issues Tax Invoice under the service charge “Lightning Deal Fee” SAC 998599.

Amazon usually communicate with the Sellers on their registered email Id’s regarding the charges levied towards the Lightning Deals configured during relevant period for eg. January 2021.

Sellers can access the lightning Deal fee report for the relevant period through the custom reports feature available on their seller central dashboard.

Follow these simple steps as shown in the image.

Amazon lightning deal
Amazon lightning fee report download
Amazon lightning deal fee report

The charges levied under the Amazon Lightning Deal Fee will get adjusted with the seller’s account and the seller can see the adjustment in their next payment cycle.

As long as the services are availed by the seller, Amazon will continue to charge the Lightning Deal fee on monthly basis.

These Lightning Deal Fee Tax Invoice is received on the registered Email Id’s, so to account the same is important in context with the GST (Goods and Service Tax) and TDS (Tax Deducted at source)

lightning deal fee

How to Account for the Lightning Deal Fee?

In GST

The seller can claim the Input Tax Credit in their relevant Tax Period GST Return (IGST/CGST/SGST)

In case if credit invoice is issued against such levied fees, the same has to be adjusted and the ITC should be reduced in the Tax period in which the credit note is received by the seller.

In TDS

Since these charges are covered under the provisions of TDS, the seller has to deduct the TDS on these charges as per the relevant tax rates applicable to the relevant assessment year.

Relief on TDS Rates not applicable for FY 2021-22, pay TDS on these rates

How to file a TDS claim on Amazon and check TDS reimbursement

In case of a Credit note issued, the same should be accounted for so that the amount can be adjusted while calculating the TDS for the relevant Tax period.

How to deal with Amazon Form 16A – TDS Certificate u/s 194-O

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