Tds on credit note passed on achievment of sales to dealers

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2014 Our company is into trading of goods. It sales the product to sub dealers and then same sub dealers sell the same to end customers. On basis of receipt of sales out details of sub dealers to end customer our company has passed on the credit note to dealers worth Rs. 45000/-

Now, on this credit note are we suppose to deduct TDS? If yes, then under which section?

Rupesh Jain

Rupesh Jain (Expert)
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13 June 2014 it not the commission its trade discount so tds will no applicable.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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13 June 2014 It is a type of commission, so deduct tds on

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Querist : Anonymous

Querist : Anonymous (Querist)

13 June 2014 Dear Experts

Pls clarify me as i have got confused whether to deduct or not as got confused by receiving both replies.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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13 June 2014 as per provision commission recd is by a person acting on behalf of another person for for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities

no TDS is required as the sales made by the sub dealers are made by them independently they are not the agents of company

its not a commission its a discount

CA UMESH DULAL

CA UMESH DULAL (Expert)
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13 June 2014 If it is given as discount, no tds is required. But as per your question, you are paying it as performance bonus so tds is to be deducted.