Remya.G (Accounts Executive) (34 Points)
30 October 2012Hi,
We are a software company dealing with development and sale of our own software. We are giving 20% commission to agents on each sale. Are we liable to deduct TDS on them, if yes whats the rate of TDS? Whether the agents has to raise invoice on the same? Please help.
Prashant
(Assistant Manager)
(38 Points)
Replied 30 October 2012
Hi Remya,
1. you have to deduct TDS @ 10% u/s 194H (commission/ brokerage)
2. its always better to take invoice from the agent
Regards
SekharPadala
(Dy. Manager Accounts & Finance)
(36 Points)
Replied 30 October 2012
Lokesh Rao
(sr associate )
(45 Points)
Replied 30 October 2012
hi,
I have one doubt regarding wheather to calculate commission on Net billings effected by agent (excluding service tax) or Bill ammount including service tax. Which one is usually followed in sofware industry.
Yogesh Kumar
(Job)
(180 Points)
Replied 30 October 2012
In section 194h words mentioned are any income by way of commission and income does not include service tax, so TDS should be deducted on commission exculding service tax. But in industry inclusion of service tax followed and TDS will be deducted on gross amount.
anony
(MANAGER)
(145 Points)
Replied 31 October 2012
TDS to be deducted on amount including service tax in all cases except rent (194I).
Regards,
Lalit Dhabria
Raghavendra B. kuber
(Accounts Executive)
(88 Points)
Replied 31 October 2012
Sumit Middha
(Head (Fin.& A/c) M.COM M.A.(Eco) MBA CS Final)
(2453 Points)
Replied 31 October 2012
you can Download TDS Rate Chart..
CAclubindia
