Querry regarding TDS u/s 194H

Page no : 2

(Guest)

Originally posted by :Miss Komal Mantri
"	194 H is applicable...	"

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

ABC Ltd is selling cars to customers and it has on commission basis made payment to XY & Co. which brings customer in case of sale of a car. So the payment which is made on the Commission basis, on that payment whether 194H is applicable or 194C is applicable. I have raised this query, as the accountant has made payment on the brokerage basis and deducted TDS @ 10.3% as TDS on Works Contract.

I am not confirmed whether there has been any contract made between the party say XY & Co. But I take it as, that the contract would not have been undertaken.

Explain me whether it should be a contract or brokerage. and can u pls give me the exact definition of Contract as per Sec. 194C and Brokerage as per Sec. 194H of the Act.

Amit Dubey (Service) (26 Points)
Replied 27 December 2008

We are providing printed catalogues to bank for insertion in their credit card statement for that bank raising debit note to us. We are paying for te same please confim under which section we deduct TDS 194 C or 194 H

CA CHINTAN AJMERA (Chartered Accountant) (2987 Points)
Replied 27 December 2008

Sec 194C will apply.

PANKAJ KUMAR (Asst. Manager) (21 Points)
Replied 01 February 2010

We are International freight forwarder we get certain % of commission and discount from airlines. Previously airlines were charged TDS u/s 194H on commission only but now they are forcing us to pay TDS u/s 194H on discount also. Kindly guide me is TDS u/s 194H is applicable on Discount also, but same time none of our subagent are ready to pay TDS u/s 194H on Discount.

What is rule and what should we do?????

waiting for rules and your kind views.