TDS Deduction on actual amount
This query is : Resolved
Quick Summary
TalentHunt Consultants
(Querist)
23 May 2022
I am working as a Freelance Consultant (as an Individual)with a Consulting Co into Recruiting business. Being into professional service the TDS Deduction works at 10%.
The working model is that I am eligible for 50% of the income from the assignments that I handle. I am not into any employment model with them.
Now if an income of Rs. 1,00,000/- is generated from an assignment and the Client is making the payment to the Consulting company of 90,000/- after deducting 10% TDS.
So in the above situation the consulting company will further deduct 10% TDS on 45,000 (50% of amount received) and pay me 40,500 or it will deduct 10% TDS on 50,000/- which is 50% of the actual income generated.
Please if someone can give inputs on this.
Thanks
The working model is that I am eligible for 50% of the income from the assignments that I handle. I am not into any employment model with them.
Now if an income of Rs. 1,00,000/- is generated from an assignment and the Client is making the payment to the Consulting company of 90,000/- after deducting 10% TDS.
So in the above situation the consulting company will further deduct 10% TDS on 45,000 (50% of amount received) and pay me 40,500 or it will deduct 10% TDS on 50,000/- which is 50% of the actual income generated.
Please if someone can give inputs on this.
Thanks
CA Rashmi Gandhi
(Expert)
23 May 2022
In my view company has to deduct TDS on 50000 i.e. on actual income generated
28 May 2022
TDS will be applicable on Rs. 50,000, Income which has been generated and not Rs. 45,000 i.e. amount received
TalentHunt Consultants
(Querist)
28 May 2022
Hello Rashmi,
Thank you very much for the information.
Thank you very much for the information.
Message likes :
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TalentHunt Consultants
(Querist)
28 May 2022
Hello Saurabh, Thank you very much for the information.
CA Rashmi Gandhi
(Expert)
28 May 2022
Welcome.... My Pleasure......
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