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TDS on incentives

sanathkumar (article) (33 Points)

27 September 2007

Whether TDS should be made on Incentives paid for booking of sales or orders for sale ?

Note: The person receiving the incentive is not an employee of the company.

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6 Replies

Ravikumar.G (Consultant) (18525 Points)
Replied 27 September 2007

This will not come under Incentive Head . I think sales commission. Any way TDS will attract.

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MAHENDRA IYER (SERVICE) (315 Points)
Replied 28 September 2007

TDS provisions will definitely apply. To be precise Section 194J will apply.

MAHENDRA IYER (SERVICE) (315 Points)
Replied 28 September 2007

Sorry 194H will apply

CMA Gul S (Program Manager) (5910 Points)
Replied 28 September 2007

Yes Section 194H will apply to this particular case

sanathkumar (article) (33 Points)
Replied 28 September 2007

Thank u for the reply. Further i would like to know that if such person receiving the incentives is the buyer himself,i.e., incentives given as a percentage of sales made to him.

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sanathkumar (article) (33 Points)
Replied 28 September 2007

Thank u for the reply. Further i would like to know that if such person receiving the incentives is the buyer himself,i.e., incentives given as a percentage of sales made to him.