Commission paid in cash (with out bill)

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Anuj Verma (Querist)

05 May 2012 We have paid cash amount in F.Y 2011-12, to individuals for providing support in getting orders from customer.

If we want to take the same as indirect exp. In our account books, what will be the process?

All 3 individuals are agree to provide there pan nos. but they do not have service tax registration or bills for the same. They arrange orders on behalf of personal relations with authorities.

we made payment in the month of Dec.11 & Jan 12. if we take the same how will we make payment of TDS for the same.

Kindly suggest.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

05 May 2012 1. Cash paid in a single day exceeding Rs 20000/- is liable to be disallowed.
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2. It is possible that all the 3 Individuals are not liable to Service Tax where their taxable commission receipts does not exceed Rs 10.00 Lacs. If they provide PAN & their Addresses, then it is sufficient compliance from their side.
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3. You can deposit TDS with applicable interest rates U/s 201(1A)(i) & (ii) respectively. You may show TDS deduction entry as on 31.03.2012.
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4. For necessary compliance, take services of Consultants in TDS matters, because, small savings on professional fees account may convert into bigger tax/Penalties liability.
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