Tds

This query is : Resolved

Ashish Gupt (Querist)
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31 October 2013 we are giving commission to persons for bringing the milk to our booth in pursuant to contract b/w us.
whether this will fall under 194C or 194H.
Pl suggest.

Ganeshbabu K

Ganeshbabu K (Expert)
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31 October 2013 payment of commission will attract to TDS under section 194H @10%

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 October 2013 194C will apply only if you are making full payment to him inclusive of the cost of milk.

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Ashish Gupt

Ashish Gupt (Querist)
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01 November 2013 @Nikhil - in ur case its simple purchase, we do not need to deduct any TDS

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 November 2013 what I mean to say is:

1. If you are paying this person only the commission, (ie the price of milk is paid to the milk vendor separately) then 194H will apply

2. If you are paying him commission plus the price of milk on the basis of a supply contract, then 194C should apply.

3. If it is only supply of milk, in the same manner we pay for milk when we buy from mother dairy, then no TDS.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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01 November 2013 TDS Rate of 10% will be applicable on payment of commission or brokerage by person other than Individual and HUF to any other person, and then they have to deduct TDS at the rate of 10% but commission or brokerage for financial year should be greater than Rs 5000/-(exceed five thousand rupees).

So Not TDS on commission or brokerage is payment for financial year is less than Rs 5000/-

In your case TDS is to be deducted U/S 194H...