09 May 2011
Dear Sir, One of my client is selling goods through its distributors. now he wants to give over-riding commission to retailers through its distributors.My question is that, is any requirement for deducting TDS under 194(H) of Income Tax Act 1961 when my client is reimbrusing overriding commission amount to distributors. Please give advice.
09 May 2011
If the client is liable for TDS and the commission exceeds the threshold limits mentioned in 194H, then tax has to be deducted @ 10% on the commission so paid.
CAclubindia
