What’s TDS (Tax Deducted at Source) and is it applicable on the fees charged by PayPal?
TDS (Tax Deducted at Source) is a domestic withholding tax in India, under the Indian Income Tax Act.
We've been advised that the fees charged by PayPal don’t fall under any category liable for tax deduction at source under the provisions of the Income Tax Act.
Note: As stated in Clause 11.12 of the User Agreement, it's the responsibility of the users to check with their local tax advisor to determine the applicability of any taxes and accordingly pay such taxes to the appropriate tax authority. Please consult your tax advisor to understand the implication of income tax law for you.