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Tds on payment of commission on sales to director (honour)

kishore (Assistant Manager- Accounts) (59 Points)

22 May 2017

Dear Sir / Madam, We are paying Commission on Sales to our Director & as well as Salary. Can you please confirm that TDS will be deducted on commission part u/s 192 or 194H. Thanks in Advance

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PRABIR PAUL (*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.) (1448 Points)
Replied 22 May 2017

you said commisson paid to director. i.e. there is employer and employer relationship hopefully this is a Pvt. Ltd. or Ltd company.

So TDS will be attract as per the provison U/s 192 for commision paid to director as it will be consider for salary income. This is the exception rules of section 194H.