Very urgent tds query

Incentive is also a kind of commission so tds will be deducted under 194J if payment is above 5000 @ 10%.

commision comes under 194C

Originally posted by : niharika sureka
	Incentive is also a kind of commission so tds will be deducted under 194J if payment is above 5000 @ 10%.

Commission and brokerage comes under section 194H, otherwise answer is true

Sorry for section mistake.. But commission comes under Section 194H..not 194C it is for Contractors

Sorry for section mistake.. same here

Commission and brokerage comes under section 194H @ 10 %.

incentive is lik commission.. so tds under 194 H..!

Incentive is like commision so TDS will be deducted @ 10% u/s 194-H on amount exceeding Rs.5,000

However NO TDS will be Deducted if such incentive does not exceed Rs.5,000

Further No TDS will be deducted if Deductor is Individual or HUF not covered u/s 44AB

Mr. Manik you will be liable to deduct the TDS @ 10 % on payments to subdealers u/s 194H, if your aggregate payment to the subdealer exceeds Rs. 5000. during the FY.

For reference kindly go through these explanations of section 194 H

194H. Explanation.—For the purposes of this section,—       

(i)  “commission or brokerage” includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being profes­sional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities;     

(iv)  where any income is credited to any account, whether called “Suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee and the provisions of this section shall apply accordingly.’.

It comes in Section 194H Commission or Brokerage on the limit of Rs. 5000/- 

Incentive-It is not based on fixed rate or %.

Commission-It is based on pre fixed rate.

Hence, when there is a fixed rate, then it attracts TDS.

The above query attracts TDS & it is in the nature of Commission.

In Construction field what are the deductions made in RA Bill and also explain the rates

Originally posted by : Jiral Savla
	Incentive is like commision so TDS will be deducted @ 10% u/s 194-H on amount exceeding Rs.5,000 However NO TDS will be Deducted if such incentive does not exceed Rs.5,000 Further No TDS will be deducted if Deductor is Individual or HUF not covered u/s 44AB

agreed...

Can anyone of you please provide any case law related to manufacturer making payment to dealers as incentive without deducting TDS?