24 July 2008
WE has neither paid nor credited the amount of commission to the party. It is only the the company which has retained the amount. As and when the bills for the same are received and booked as expense by crediting the same to co's a/c, the tax at source is to be deducted. This will be the date of deduction of TDS.
How will you account for the difference of payments ? Obviously it is commission. You should insist your agent company to raise separate bill for its commission and deposit entire amount as payment received from Customers. It is the best solution otherwise you will be in default for not deducting TDS. For its security of payment you can wotk out some mechanism with mutual agreement.
CAclubindia
