Budget updates move fast, keep up with CAclubindia Pro. Subscribe today!

TDS on commission

TDS 997 views 6 replies

anandh raghavan

Member

359 Points Joined February 2008

I pay comm to various distributors. When making payments ill deduct TDS and make the payments. I also give them something in form of gifts under certain conditions like sales target, revenue etc., The following are my questions

1. Do i have to deduct TDS on the gift component also ? ( The value of gift is less than 5000 per gift)

2. Due to some reason if the gifts are given to the same person in different months and its value has gone more than 5000 what is that need to be done as per TDS sections

Would appriciate if the replies also has some case laws to support. This will have big impact on business based on the solution given.

Replies (6)

praveen

Chartered Accountant

6971 Points Joined September 2007

Yes, Payment neednot always be in monetary form but can also be in the form gifts. Hence, you need to deduct tax on such non monetary amoutn also.

Join us on Facebook https://www.facebook.com/pages/Sampoorna/184315778304697

anandh raghavan

Member

359 Points Joined February 2008

Thanks for your reply. I Just wanted to knwo whn we have to deduct???

viral sheth

57 Points Joined July 2011

tds is not to be deducted on gift

however the value of the gift should be recorded in ur distributors books and he should be liable for the self assessment tax as the gift you are giving is in direct nexus for the distributors.