Discount on MRP allowed is commission to attract sec. 194H
Discount allowed by assessee to its channel partners on MRP of its product amounted to commission which would fall under provisions of section 194H
manoj (student) (5205 Points)
19 January 2013Discount on MRP allowed is commission to attract sec. 194H
Discount allowed by assessee to its channel partners on MRP of its product amounted to commission which would fall under provisions of section 194H
CA Deepak Rathore
(EXPERT)
(281 Points)
Replied 20 January 2013
TDS u/s 194H not applicable on discount given
Once the TDS has been deducted from the commission, there should not be further deduction from any portion of same said commission by the assessee firm from the payment received from the sub-franchisee/retailers due to selling of the products and as such Sec. 40(a)(ia) of the IT Act does not attract as the nature of deduction is nothing but trade discount not necessarily construed as commission, thereby there is no scope of applicability of Sec-194H of the IT Act”
SO,ACC TO ME
THERE IS NO QUESTION OF DEDUCTING TDS ON DISCOUNT GIVEN u/s 194 H
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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