APPLICABLE OF TDS U/S 194Q

Save Share

This query is : Resolved

BANSI LAL KHURANA (Querist)
Follow

20 June 2023 FORMER -A, COMMISSION AGENT -B, RICE MILL -C.
FORMER-A- BROUGHT ITS PADDY (FOOD GRAIN) IN THE GRAIN MARKET FOR SALE ON AUCTION AT COMMISSION AGENT SHOP-B. THE RICE MILLER -C- PURCHASE THE FORMER PADDY ON AUCTION . NOW THE COMMISSION AGENT -B- ISSUE THE FORM I IN THE NAME OF RICE MILLER BY SHOWING AS
PADDY VALUE WT*RATE (50.00*3000) 150000.00
DHAMI/COMMISSION @2% 3000.00
LABOUR - BAGS*LABOUR RATE (100*7) 700.00
TOTAL 153700.00
THE COMMISSION AGENT -B SAYS THAT I AM NEITHER PURCHASER NOR SELLER. I AM ONLY COMMISSION AGENT/MIDDLE PERSON. THE COMMISSION AGENT TRANSACTION WITH THE MILLER HAS MORE THEN 50 LAC IN A FINANCIAL YEAR. MY QUESTION IS THAT THE MILLER IS LIBLE TO DEDUCT THE TDS U/S 194Q FROM COMMISSION AGENT.

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

06 July 2024 • TDS under Section 194Q: Yes, the Rice Miller (C) is liable to deduct TDS under Section 194Q on payments made to the Commission Agent (B) if the aggregate payments in a financial year exceed Rs. 50 lakhs.
• The Commission Agent (B) acts as an intermediary and receives commission for facilitating the sale, which falls under the ambit of Section 194Q for TDS deduction purposes.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

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