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?


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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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