APPLICABLE OF TDS U/S 194Q

This query is : Resolved

BANSI LAL KHURANA (Querist)
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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)
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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.

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