Commission and tds

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This query is : Resolved

D.Anil (Querist)

20 April 2014 Dear sir, our firm is engaged in sale of maize powder used as cattle feed . Our sister concern have engaged some persons on contract for procurement of raw materials for their firm. These persons on contract have agreed to find the business opportunity for our firm also. We agree to give 10 Paise per Kg of maize sold by information given by these contract persons. Are we liable to deduct TDS if payment to a single person exceeds RS.5000/-?

Nikhil Kaushik

Nikhil Kaushik (Expert)

20 April 2014 yes you are required to deduct tds on the same.

SUDHIR KUMAR JAIN

SUDHIR KUMAR JAIN (Expert)

21 April 2014 Yes, As you are paying commission to them for procuring the business for them.

Rupesh Jain

Rupesh Jain (Expert)

21 April 2014 you are paying commission the you have to deduct the tds u/s 194H @10% on commission payment.

but you not mention the firm status proprietorship or partnership.

if partner ship then you have to deduct the tds.
if you are prop. and your sales are below rs. one crore in F Y 2013-14.
then you are not liable to deduct the TDS.
if your sales are above Rs. 1 crore then you have to deduct the tds as above rate.

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