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TDS on marketing commission

Aswathy Nair (CA) (61 Points)

01 June 2022

Is TDS applicable on marketing commission? If yes then what percentage?

Can any retail company raise invoice of marketing commission?

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7 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 01 June 2022

Please refer Section 194H of the Income tax Act , TDS applicable (other than Insurance commission ) threshold limit is 15000/- TDS @ 5% For F.Y 22-23 .

Invoice can be raised , if GST registered then GST applicable .

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Aswathy Nair (CA) (61 Points)
Replied 01 June 2022

Can invoice be raised if in MOA it is mentioned trading activities?

sabyasachi mukherjee (27574 Points)
Replied 01 June 2022

Pertinent points
1. commision earned is subject tax deduction
2. sec 194 H IS APPLICABLE @ 5%FOR FY 22 23. INVOICE CAN BE RAISED IF GST IS REGISTERED.

Kev Men (788 Points)
Replied 01 June 2022

Yes. TDS U/s 194H will be applicable on marketing commission @ 5% if the commission exceeds Rs. 15000 during the year.

A retail company can raise invoice of marketing commission if it is a marketing is a business of the company as per its Memorandum of Association.

prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 01 June 2022

In my opinion your company should make necessary corrections in MOA , passing special resolution in board meeting for correction in MOA , filing MGT14 etc .