etzee

Why was tax deducted from my payout?

Right now, nothing has been. The figures on your Finance screen are estimates — here is what they mean.

The Metzee team15 Oct 20262 min read

At the moment, nothing is being deducted. Your Finance screen says so in as many words: the GST TCS and income-tax TDS figures there are estimates, and they’ll be deducted from payouts once automatic payouts start.

So if you came to this page because a number looked like a deduction, read it again — it is a forecast of what will be withheld, not a record of what was.

What the figures are

Under the financial-year block on your Finance screen, two lines sit among the rest:

  • GST TCS — on taxable sales. Shown only if your store is registered for GST.
  • Income-tax TDS — marked section 194-O, the provision covering e-commerce operators.

Each carries the live percentage beside it. Read the number on your screen; a figure written into a blog post would be wrong the day a rate moved.

What will happen

A marketplace is required to deduct these and deposit them against your GSTIN and PAN. When that starts, the amounts will leave your payout and arrive with the tax authorities in your name.

Which is the part sellers get wrong: it is not a cost. TDS deposited against your PAN is credit you claim when you file — it reduces what you owe, or comes back as a refund if you have overpaid. The same is true of TCS on the GST side. Treating it as a fee is double-counting.

The one thing to do now

Put your PAN on file. The TDS line is marked either section 194-O or higher rate: no PAN.

If yours says higher rate: no PAN, the forecast is at the higher rate because there is nothing to credit the deduction to — and that version genuinely costs money. Seller settings → Business & tax, two minutes. It is also Required to receive payouts. and half of what the Verified tier asks for. How to get verified

What this is not

Metzee’s commission is a fee, not a tax, and it is already out of what reached your balance. When is the commission taken?

GST on that commission is tax on a service supplied to you — different again. There is a deduction I do not recognise

For your accountant

The screen itself says it plainly: For your records — confirm GST and income tax with your accountant.

The financial-year block is built for this — useful for GST and income-tax filing, running from the start of the financial year. Can I get a yearly summary for my accountant?

What Metzee will deduct is knowable and on your statement. What you owe is a question for an accountant, and at any scale one conversation with one is worth more than any amount of reading. Do I need to charge GST on what I sell?

More: what comes out of a sale, how to read your payout statement, what it costs to sell.

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