20 June 2023
FORMER -A, COMMISSION AGENT -B, RICE MILL -C. FORMER-A- BROUGHT ITS PADDY (FOOD GRAIN) IN THE GRAIN MARKET FOR SALE ON AUCTION AT COMMISSION AGENT SHOP-B. THE RICE MILLER -C- PURCHASE THE FORMER PADDY ON AUCTION . NOW THE COMMISSION AGENT -B- ISSUE THE FORM I IN THE NAME OF RICE MILLER BY SHOWING AS PADDY VALUE WT*RATE (50.00*3000) 150000.00 DHAMI/COMMISSION @2% 3000.00 LABOUR - BAGS*LABOUR RATE (100*7) 700.00 TOTAL 153700.00 THE COMMISSION AGENT -B SAYS THAT I AM NEITHER PURCHASER NOR SELLER. I AM ONLY COMMISSION AGENT/MIDDLE PERSON. THE COMMISSION AGENT TRANSACTION WITH THE MILLER HAS MORE THEN 50 LAC IN A FINANCIAL YEAR. MY QUESTION IS THAT THE MILLER IS LIBLE TO DEDUCT THE TDS U/S 194Q FROM COMMISSION AGENT.
06 July 2024
• TDS under Section 194Q: Yes, the Rice Miller (C) is liable to deduct TDS under Section 194Q on payments made to the Commission Agent (B) if the aggregate payments in a financial year exceed Rs. 50 lakhs. • The Commission Agent (B) acts as an intermediary and receives commission for facilitating the sale, which falls under the ambit of Section 194Q for TDS deduction purposes.
CAclubindia
