Dev K Sharma (Learning Thru Experience) (157 Points)
12 May 2011Dear Sir/ Friends ,
I m bit confused kindly clarify my confusion.... i m decucting TDS @ 10% on Commission under Sec 94H.. 406000/- (TDS Rs. 40600/-)
I m paying same person salary @ 20000/- per month,
Is TDS also required to deduct on Salary also becoz after computaion the TDS deducted on 94H is refundable, is tds required to deduct of salary also...
Kindly Help,,
Dev k Sharma
Dev K Sharma
(Learning Thru Experience)
(157 Points)
Replied 12 May 2011
bt the tds amount deducted on 94H is al ready refundable in his individual return and if i deduct TDS on Salary also....the amount will be on the higher side.
if i have to deduct TDS on salary also @ wt rate i have to deduct becoz its already refundable
CS,CA F,Numrologi TusharSampat
(CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert)
(85930 Points)
Replied 12 May 2011
Sec 192 deals with TDS on Salary paid to employes.So u refer Sec 192.
Sec 194h is regarding commsion paid .
Both r different SEC n hve diff req if conditions under this sec r fulfilled thn both will be applicable seperately.
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 12 May 2011
| Originally posted by : Dev K Sharma | ||
 |
Dear Sir/ Friends , I m bit confused kindly clarify my confusion.... i m decucting TDS @ 10% on Commission under Sec 94H.. 406000/- (TDS40600/-) I m paying same person salary @ 20000/- per month, Is TDS also required to deduct on Salary also becoz after computaion the TDS deducted on 94H is refundable, is tds required to deduct of salary also... Kindly Help,, Dev k Sharma |
 |
In my opinion.......!!!!!!!!!!!!!
As per sec 194H only person other than individual and HUF required to deduct TDS @ 10% on commission (not being insurance commission referred to in section 194D) or brokerage.
you have to deduct TDS on salary only as if you read Sec 192 then .........you will find that Any person responsible for paying any income chargeable under the head “Salaries” shall be required to deduct TDS on the amount payable at the average rate of income-tax Computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year.
Therefore the liability to deduct TDS in case of salary is on all persons, whether individual, HUF, Firm or a company irrespective of the fact whether the person in carring on business or not.
Therefore you will have to deduct TDS as follows
i.e. tax on240000(20000*12) =8000.
average of tax i.e. 8000/12= 666.67/month.
Thus, TDS to be deducted every month by you will be666.67
Let other Member Explain.....!!!!!!!!!!!!!!
Suresh Prasad
(www.aubsp.com)
(15630 Points)
Replied 12 May 2011
Click for
Palash Gupta
(Student...Hoping to pass Inter)
(892 Points)
Replied 12 May 2011
Prakash kumar panda
(Manager-finance)
(38 Points)
Replied 13 May 2011
I do agree with Mr Palash. At the time of deducting TDS on salaries the employer need to take cognizance of any other income and TDS deducted there from for calaculation of the fianl liability.
Dev K Sharma
(Learning Thru Experience)
(157 Points)
Replied 13 May 2011
Dear Mr. Palash thanks a lot for your advice u got it right wt the confusion is ,
being firm i m deducting TDS on commission paid on sales 94H..
salary @ 20000/- per month,
On computing the employee ITR the TDS deducted on commission is refundable , so as per your opinion , i dnt have to deduct TDS on his salary....
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 13 May 2011
406000 commission
240000 salary
646000 total
may we ask you to share the computation, how the TDS get refundable in this case?
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 13 May 2011
Tax has to be deducted u/s 192 only as 192 requires tax to be deducted on salary as well as other heads reported by employee. In this case, there is no need of declaration by the employee, as the company already knows about it. The tax deduction shall be as below.
Salary : 237500 (I am assuming that there are no allowances except professional tax Rs. 2500)
Commission : 406000
Total : 643500
Tax (A.Y. 2011-2012): 64581 (Including education cess)
TDS u/s 192 p.m. 5381 (except in the month of March Rs. 5390)
It is assumed that there are no investments that are deductible under Chapter VI-A
No need to deduct under 194H.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 13 May 2011
i did asked about the "refundable status of TDS" on commission, which is mentioned in 1st post amd 9th post.
Dev K Sharma
(Learning Thru Experience)
(157 Points)
Replied 14 May 2011
Sharma Sir,
Total Commission paid Rs. 4,06,000/- - Tds @ 10% 40600/-
Salary paid during the Year 20000/- x 12 = 240000/-
Total Income = 406000+240000= 646000/-
Standard Deduction Rs. 1,60,000/-
Deduction Under Sec 80C - 1,00,000/-
Total Deduction = 260000/-
= 646000-260000 = 386000/- * 10.3% = 39758/- total TDS deducted Rs. 40600/-
Refundable = 842/- ..
Hope sir i m nt wrong...as i m new thats why...
Dev K Sharma
(Learning Thru Experience)
(157 Points)
Replied 14 May 2011
| Originally posted by : U S Sharma | ||
|
|
i did asked about the "refundable status of TDS" on commission, which is mentioned in 1st post amd 9th post. |
|
Dear Sharma Sir,
Total Commission paid Rs. 4,06,000/- - Tds @ 10% 40600/-
Salary paid during the Year 20000/- x 12 = 240000/-
Total Income = 406000+240000= 646000/-
Standard Deduction Rs. 1,60,000/-
Deduction Under Sec 80C - 1,00,000/-
Total Deduction = 260000/-
= 646000-260000 = 386000/- * 10.3% = 39758/- total TDS deducted Rs. 40600/-
Refundable = 842/- ..
Hope sir i m nt wrong...as i m new thats why...
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
