22 December 2008
I want to ask that, we are a proprietorship concern and now we want to made payment to company as a commission on sale so then shouls we deduct TDS on it or not.
22 December 2008
Tax on commission is deductible if proprietor is covered for Tax Audit in the preceding year otherwise not. All provisions of TDS apply if covered for tax audit in the preceding year. However, provisions of section 192 apply to proprietorships not having sales or receipts as per limits of section 44AB. Hence, provisions of TDS on salary apply to every employer irrespective of the turnover, sale or gross receipt.
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