10 January 2009
I am working in pvt ltd company. The company is paying commisson his clients. I want to know what will be the tds rate and how to post the entry
10 January 2009
LIABILITY FOR TAX DEDUCTION Copyscape
Any person, not being an individual or a Hindu undivided family, who is responsible for paying, any income by way of commission (not being insurance commission referred to in Section 194D ) or brokerage, shall, deduct income-tax thereon at applicable rates.
PLEASE NOTE:
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In case of an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under Section 44AB during the financial year immediately preceding the financial year in which such commission or brokerage is credited or paid, shall be liable to deduct income-tax under this section.
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Commission or brokerage includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities.
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Professional services means services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or such other profession as is notified by the Board for the purposes of Section 44AA.
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Where any income is credited to any account, whether called Suspense account or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly The tax shall be deducted at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier. RATE OF TAX DEDUCTION Copyscape
10 January 2009
RATE OF TDS 10 % + CESS @ 2% OF TAX SHE @ 1% OF TAX IF INCOME ABOVE 10 LKHS THEN S.CHG ALSO HAVE TO BE ADDED SO THE EFFECTIVE RATE FOR INCOME < 10 LKHS IS 10.3%
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