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TDS on commission

bishan singh negi (service) (104 Points)

09 April 2008

HI MY ONE OF THE FRIEND IS A LIFE INSURANCE AGENT AND THIS YEAR HIS ANNUAL COMMISSION IS CROSSED OF RS 10LAC.

MY QUESTION IS NO 1. CAN HE IS LIABLE TO GET HIS ACCOUNTS AUDITED 2 THE LIC OF INDIA IS DEDUCTING TDS @ 35% INSTEAD OF 10.330 % THE CORPORTION SAID SINCE HIS INCOME IS CROSSED RS 10LAC WE HAVE TO DEDUCTED TDS @ 35% IS IT RIGHT OR WROUNG PLEASE .

THANKING YOU WITH REGARD

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10 Replies

Shyam Lal Naik (Service) (6156 Points)
Replied 09 April 2008

In case the commission exceeds Rs. 10L, the TDS rate should be 11.33%. It should not be 35%.

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Amit Sharma (article) (2677 Points)
Replied 09 April 2008

TDS on commission should be deducted @ 11.33%

(Guest)

1) If commission is paid to a travel agent for which it is not sure that he will give us further business, should we deduct TDS.

2) The limit for TDS deduction on commission is on Individual client basis or total commission earned by a travel agent from all the clients.

Shyam Lal Naik (Service) (6156 Points)
Replied 19 May 2008

Dear Abhinav,

Once commision exceeds Rs. 2500/- tds should be deducted.

Indivisual client basis.

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 19 May 2008

TDS rate should be 11.33% He is not be liable for Tax Audit

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(Guest)

HOW CAN BE CHARGE TDS ON INSURANCE COMMISION

WHAT IS THE ENTRY OF TDS PAID(INSURANCE COMMISION)

(Guest)

I M WORKING IN INSURANCE COMPANY

WHAT IS THE TRATMENT OF INSURANCE PREMIUM IN TALLY

& WHAT WILL BE DO ENTRY IN TALLY

(Guest)

Should we deduct TDS on commission paid to Travel Agent? What is the limit? What is rate?

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 03 July 2008

In case Commission amount exceeds Rs. 10 Lacs, the TDS would be deductible @ 11.33%.

(Guest)

Originally posted by :Guest
"	1) If commission is paid to a travel agent for which it is not sure that he will give us further business, should we deduct TDS. 2) The limit for TDS deduction on commission is on Individual client basis or total commission earned by a travel agent from all the clients.	"