company made payment for commision to a party on the account of purchase of raw material and deducted the tds on the commission and later on company reverse some amount of commision paid due to short receipt of raw material now the question is Tds to be deducted on what amount commision originally booked or net commision( after reversing some amount of commission)
14 Replies
Monica
(student - CA Final)
(83 Points)
Replied 30 August 2011
tds to be deducted on the total payment made ( net commission ).
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 30 August 2011
TDS IS ALWAYS DEDUCTED AT THE TIME OF CREDIT OR PAYMENT , WHICHEVER IS EARLIER. HENCE DEDUCT TDS ACCORDING TO THIS .
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 30 August 2011
I don't agree other reply
company should deduct TDS on gross amt. & debit the rejection in his a/c
Bharat Chandra nanduru
(Auditor In-charge)
(32 Points)
Replied 30 August 2011
whether conveyance allowance is included in the calculation of esi ?
what are included in the calculation of pf, esi ?
what are the details of the same ?
Dhanabal Ramasamy
(CHARTERED ACCOUNTANT)
(105 Points)
Replied 30 August 2011
Hai.....
TDS is to be deducted on the amount paid or credited which ever is earlier. So TDS is to be deducted on the gross amount. Eventhough later some amount reversed we need cannot reverse the TDS.
But practically it is enough to deduct TDS on net amount. It is justified as that TDS is tax on income of creditor. so net amount is going to be his income so it is enough to deduct TDS on net amount
CA Kumar Mukesh
(CA CMA FINAL and Advance Excel Trainer)
(6881 Points)
Replied 30 August 2011
Dear Dhanabal
can justify AO at time assessment when he asked rate of commission\brokerage paid
radha
(ggk)
(44 Points)
Replied 30 August 2011
In the case of PF, deduction is compulsory only on gross amount of Basic+DA if it is less than Rs.6501. On other allowances deduction may or may not made at the option of employer
But in the case of ESI, deduction have to be made on total amount including all allowances
Dhanabal Ramasamy
(CHARTERED ACCOUNTANT)
(105 Points)
Replied 30 August 2011
| Originally posted by : Kumar Mukesh | ||
 |
Dear Dhanabal can justify AO at time assessment when he asked rate of commission\brokerage paid |
 |
Yes. We can justify because intention of TDS provision is not to make the company suffer but to check the assessee(creditors or receiver) from evading the tax. So when the purpose of the Act is served then why company should suffer.
VISHNU HARIT
(Assistant manager (management trainee))
(59 Points)
Replied 30 August 2011
TDS U/S 194-H ( Tds on comm.) will be deducted on toal amount, paid or credited to payee account , whichever is earlier . the comm. amt. which was reversed after some time will not make any consequences towards the amt of TDS Deducted.
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