Tds on commission

SHIVANG (Practicing CA) (124 Points)

12 September 2012  

Hello Professional Friends,

We all know that there is limit of Rs.5,000/- in deducting tax from Commission payment.

The deductor is a Private Limited Company.

 

So my question is-

Shall we check this limit every year? (We shall not deduct tax till limit does not exceed Rs. 5,000/-

or

if once Tax has been started deducting in one year then in next year we shall deduct tax from the payment of very first Ruppe?