Tax deduction at source

This query is : Resolved 

14 March 2014 M/s XYZ Pvt ltd co is carrying on trading business. The company has entered into contracts with online portals like Flipkart, Peeper fry etc. The sale transaction is as follows:

1. Customer order for the product using online portal say flipkart.

2. Flipkart intimates about this to M/s.XYZ Pvt Ltd.

3. M/s XYZ delivers the product to the customer via Flipkart's delivery team.

4. Cash is collected by Flipkart.

5. Flipkart deducts a commission of certain percentage and remits the balance amount to M/s. XYZ pvt Ltd.

Query:

1.Does the Commission paid by M/s XYZ Pvt Ltd to Flipkart attract provisions of 194H.

2. If it does so, how should it comply if the commission is entirely deducted by flipkart.

14 March 2014 yes surely tds is applicable and u need to deduct tds if commision is paid to flipcart.



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