Mukesh Bhaiya (Manager- Accounts) (119 Points)
06 August 2013We have contraced with an advertising company for an event. The Bill given by the company is 192,000 (Gross) on which we will get a commission of 15% and a discount of 15%. Kindly tell me on on which amount should i deduct TDS u/s 194 C and whether the advertisement copany will deduct TDS u/s 194 H for commission. What if the discount amount is not shown seperately and if it is shown seperately in the Invoice.
Thanks
Mukesh
SUNILKUMAR WADHWANI
(Chartered Accountant)
(320 Points)
Replied 06 August 2013
YOU ARE REQUIRED TO DEDUCT TDS ON INVOICE VALUE. IF INVOICE IS OF VALUE AFTER DEDUCTION OF DISCOUNT, THEN DEDUCT TDS ON AMOUNT AFTER DEDUCTION OF DISCOUNT. IF INVOICE DOESNT SHOWS THE DISCOUNT THEN DEDUCT TDS ON GROSS INVOICE VALUE.
COUNTERPARTY WILL DEDUCT UR TDS UNDER 194H AS ITIS CROSSING THE LIMIT OF RS-5000/-.
Mukesh Bhaiya
(Manager- Accounts)
(119 Points)
Replied 06 August 2013
if the commission to be received is deducted from the gross value of the bill, then is TDS to be deducted on the amount after deducting receiving commission and discount or only after receiving the discount amount.
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