Commission reduced from income from commission

This query is : Resolved

Nirmal (Querist)
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28 July 2011 My client has received commission from one of the Limited Company for sales bought by him to the company and he got 50k TDS deducted from the Company.

He further pays the commission to various people who have fetched the order for my client on the same sale for which he has received Commssion.

1)I want to know that whether commssion paid can be deducted from Income from Commission,and
2)he is not falling under Tax Audit hence he need not deduct TDS for whom he is paying Commission.am i rite ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 July 2011 i) Commission paid can be reduced from commission income.
ii) If in the immediately preceding year,he / she is not covered under tax audit no need to deduct tax u/s 194H from commission paid.

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Nirmal

Nirmal (Querist)
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28 July 2011 Can u please guide me whether do i have to file the same under Profit and gain from Business and Profession or under Income from Other source as assess is not maintaining books of accounts for this purpose.can u please let me know even the section.

Your reply is appreciated

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