TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 In case a company has appointed another company as a selling agent with the agreement that company will always transferred the good to the agent by deducting his commission which is 1% & selling agent has /can add this 1% while selling the material .is this commission amount will attract TDS & what will be the date of credit/payment ,means the date of transferring of goods?Also the agent has to charge service tax also?

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)
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19 November 2010 Its commission, tds has to be deducted.
TDS shall be deducted either at the time of payment OR crediting to the account whichever is earlier.
I don't think service tax is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 But if the company change the words by mentioning it as `company will transfer the material /sell the material to the selling agent at a price will be 1% less then their normal selling price ,& selling price can add this 1% while further selling (which with company`s resale price list).So will it make any difference?specially in case company is not showing commission as expenses in their P & L ,instead booking sale directly at a price which is less by 1%.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 November 2010 In case the selling price is governed by the Company in the given circumstaneces it will be a transaction of Commission or Discount Allowed in the form of Commission.