banner_ad

Income tax on sales incentives

This query is : Open 
Profile Image

Profile Image

(Querist)
13 May 2012 Dear all,

My co periodically gives sales incentives or taxable turnover to the customers for achieving sales target. This co makes the payment of all incentives through cheque.They are not adjusting sales incentives against future billing of the same client.So it is concluded there is totally monetary payment for achieving a sales target.My question is ;does it attract any tds liability on the co,since there is whole monetary payment.
Profile Image

CA CS Amit S. Kedia

Profile Image

CA CS Amit S. Kedia (Expert)
13 May 2012 TDS will be deducted u/s 194H @10% on such incentive if the customers are selling goods on your behalf. The incentive given to customer is sort of commission on sales and TDS is required to deducted on such payment.

Sale shall be booked at gross amount in your books and the amount paid as incentive will be treated as selling & Distribution expenses.
Profile Image

Kurmi

Profile Image

Kurmi (Querist)
13 May 2012 Thanks for valuable feedback
Profile Image

Kurmi

Profile Image

Kurmi (Querist)
17 May 2012 Can you please refer any landmark judgement on the above situation.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news


Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details