The income tax department has exempted e-auctioneers from tax deducted at source (TDS) imposed at the rate of one per cent on e-commerce platforms, subject to certain riders.

The department issued a circular to clarify this position since the e-auctioneer conducts e-auction services for its clients in its electronic portal and is responsible for the price discovery only which is reported to the client.


However, an e-auctioneer has to satisfy certain conditions to get the exemption such as -- the sale and purchase takes place directly between the buyer and the seller outside the electronic portal maintained by the auctioneer and price discovery only acts as the starting point for negotiation.