Need more info about Withholding Tax in India

POSTED BY rockingguy ON December 2, 2013 8:04 pm ONE COMMENT


As you know there are many online retailers operating within India like Flipkart, Snapdeal,, Shopclues, eBay, etc

I was reading Amazon India affiliate program’s Operating Agreement at

Section 8, second paragraph says that if you earn more than Rs. 5000/- annually, then they will deduct 10% withholding tax, if PAN is provided. They will also issue relevant withholding tax certificate

What is this “withholding tax certificate” and what does it look like? What am I supposed to do with it? Can I claim refund?

I know about Income Tax, Sales Tax, Service Tax, Custom Duty, Dividend Distribution Tax, Securities Transaction Tax, Corporate Tax, TDS, Profession Tax, Octroi, Local Body Tax, etc

But, what is & when was Withholding Tax introduced? What are it’s rates and on which items is it levied?


One reply on this article “Need more info about Withholding Tax in India”

  1. ashalanshu says:

    Dear Rockinguy, what I interpret from your query – this withholding Tax is TDS in Indian parlance. Actually Withholding Tax is American language which is used by parent Amazon for it’s US site. 🙂



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