TDS Deduction & Reimbursement Process

1. What is the applicable TDS rate?
TDS will be deducted at 2% under Section 194C of the Income Tax Act.

2. How does TDS work for Postpaid merchants?
For postpaid merchants, the merchant can deduct the applicable TDS amount and remit the balance payment to GoKwik.

3. How does TDS work for Prepaid merchants?
For prepaid merchants, the merchant is required to deposit the applicable TDS amount with the government and subsequently share the Form 16A/TDS certificate with us. Upon receipt and verification of the certificate, the TDS amount will be reimbursed to the merchant.

4. What documents need to be shared for TDS reimbursement?
Prepaid merchants should share the relevant Form 16A (TDS Certificate) as proof of TDS deposit for processing the reimbursement.

5. How frequently are TDS certificates issued?
TDS certificates (Form 16A) are issued as per the statutory timelines prescribed under the Income Tax Act, typically on a quarterly basis and this falls under the merchant's liability.