PAYMENT OF COMMISSION

This query is : Resolved

DEEPAK GUPTA (Querist)
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02 November 2010 A PERSON DOING A BUSINESS AND PAID COMMISSION TO VARIOUS AGENTS.

ALL PAYMENTS HAVE BEEN MADE THROUGH CHEQUES AND AFTER DEDUCTION OF T.D.S.

1. ON WHAT GROUND A.O. CAN DISALLOW THE SAME UNDER SECRUTINY.
2. WHAT DOCUMENTS WE HAVE TO SUBMIT IN SUPPORT OF COMMISSION.
3. IS THERE ANY CASE LAW ON PAYMENT OF COMMISSION.

taxindiaconnect

taxindiaconnect (Expert)
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02 November 2010 The AO can disallow the same on the basis that you have made bogus payment of commission and not for business purpose. So prove the business purpose of your payment and also produce third party evidence for achiving that purpose along with invoices from commission agent, provide thier PAN to AO and also produce agreement for commission, if any.