TDS on commission to sub dealer
This query is : Resolved
26 April 2008
XYZ company gives sales commission to its dealears,tax is also duly deducted.My question is if sales order is obtained by the dealer through a third party,and whatever chrges he pays to that party is recovered from the company,will this payment be considered as commission?Is the company responsible for deducting the tax at source?
26 April 2008
In this case, dealer pays charges to third party, if he provide any doucment to the co. for the same it should be treated as reimbursement of Exps. and as per provision of IT Act Tax should not be deducted on reimbursement of exps.
If dealer does not provide any document then company should deduct the Tax. (Considering the amount as commssion)
If dealer does not provide any document then company should deduct the Tax. (Considering the amount as commssion)
26 April 2008
Thanks for the answer,but could you please explain what kind of document the dealer can produce to the company?
If the dealer is raising the bill on the company for the said amount as proffessional charges is this correct ?
If the dealer is raising the bill on the company for the said amount as proffessional charges is this correct ?
26 April 2008
Document means any supporting bill/invoive for exps. which dealer has incurred.
If the dealer is raising the bill on the company for the said amount as proffessional charges then coampany should deduct the tax u/s 194J (Porfessional Fees)
If the dealer is raising the bill on the company for the said amount as proffessional charges then coampany should deduct the tax u/s 194J (Porfessional Fees)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- RCM INVOICING FROM NOV-2024
- Confusion around Form 26QB fields
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- TDS under section and rate of TDS
- GST input on scooter purchased
- TDS under section 194Q and TCS under section 206C
- GST input on car insurance and repairs
- GST input on Diwali gift to employee
- GST input on Mobile Handset
- Material and freight in same invoice
- TDS under section 194J inclusive of reimbursement of expenses
- TDS on Material and Labour in same invoice
- Should I be worried about and rectify reporting Jan,Feb ,March 2024 foreign salary in schedule FA?
Trending Online Classes
CAclubindia
