02 February 2010
Mr A is expecting a commission income of Rs 1 crore from a private party for helping it to secure a loan. What are the tax implications from the point of view of Income tax, Service tax? What are the expenses Mr A can claim to reduce his tax liability.Moreover, any tax planning tips to minimize the tax liability.
02 February 2010
TDS would be dedcuted from your commision receipt u/s 194H @ 10%. You will be liable to charge service tax as the gross receipts will cross Rs. 10 lakhs. So service tax applicable @ 10.3%.
You will also be liable for audit u/s 44AB of the income tax act as gross receipts exceeds Rs. 40 lakhs.
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