Tds in case of trading company selling goods to a company

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Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 Hi

If we, a retail trade private limited company is making payment to another company which is a trading company for supplying goods, do we need to deduct TDS. If yes, how much should be deducted and which section will apply in here?

Any help in this regard will be highly appreciated.

Ankur Singhal

Ankur Singhal (Expert)
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19 December 2015 There is no requirement to deduct TDS as it is a sale transaction.

But if there is a principal agency relationship between buyer and seller. i.e buyer working on commission basis then you need to deduct TDS @10% on amount of commision not on the sale value.

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