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Applicability of TDS on Foreman Commission

This query is : Resolved 

25 January 2022 Whether TDS is to be deducted on Foreman Commission to KSFE ? Actually it is deducted from the prize money and balance only paid.

25 January 2022 Though the query is not clear to me, but if it has already been deducted from prize money, question of deducting it again does not arise.
If any commission paid to any third party, it requires deduction as per law, without considering any earlier transaction/s.

25 January 2022 Sir,
When we get the prize money of chitty, we get the sum after deducting the entire forman commission only. We must deduct tds before making the payment. But in this case, the Chit funds give us the prize money after deducting the whole of foreman commission. Which means, if I deduct tds on the foreman commission, it will be like paying them more money than required.
Hope now the query is clear to you Sir....

25 January 2022 As the winner is not directly paying any amount to Foreman, he is not liable for any TDS.

25 January 2022 Okk. Sir....in order to legally enforce this, in case of any dispute, which provision shall we quote?

25 January 2022 As per IT act there will not be any query, as you have not paid any commission. As per any contract with the KSFE, one need to study the contract first.

25 January 2022 Okk Sir.. Thank you very much for the response.

25 January 2022 Most Welcome ...

25 January 2022 Foreman's commission is not an expense for the chit subscriber, hence TDS doesn't arise. Perhaps, KSFE recovered the GST which they have to pay on foreman's commission from the chit subscriber. Please confirm the nature of deduction and come back.



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