Difference between sales incentive & salescommission
This query is : Resolved
08 February 2016
Please Clarify me the difference between Sales Incentive & Sales Commission. and whatis the tax liablity ?
08 February 2016
The term 'commission' refers to monetary compensation paid to the sales team based on a percentage of the sales price or a set amount for selling a product.
'Incentive' on the other hand is typically used more broadly to describe a commission and many additional forms of remuneration including additional pay, commission, discount, gift coupons, etc.
'Incentive' on the other hand is typically used more broadly to describe a commission and many additional forms of remuneration including additional pay, commission, discount, gift coupons, etc.
08 February 2016
Sales Incentives paid within in the organisation to boost turnovers by fixing target.
Sales commission paid to external agencies like stockists, distributor, retailers etc.
Sales commission paid to external agencies like stockists, distributor, retailers etc.
09 February 2016
Even Mr. Kaviraja's reply looks to be perfect. Normally incentives are paid to employees and commissions are paid to outsiders in the business as well as directors of the company in case of a company registered under the Companies Act.
23 February 2016
If any company paid sales Incentive ti his employee on the basis of sales, is there any tax liability arises?
23 February 2016
Sales incentive paid to employee forms part of the salary income and taxable under the head 'income from salaries'
23 February 2016
Incentives, bonus are part of salary. Hence it is tax able under the head salary.
05 March 2016
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