Income tax on sales incentives

This query is : Open

Kurmi (Querist)
Follow

13 May 2012 Dear all,

My co periodically gives sales incentives or taxable turnover to the customers for achieving sales target. This co makes the payment of all incentives through cheque.They are not adjusting sales incentives against future billing of the same client.So it is concluded there is totally monetary payment for achieving a sales target.My question is ;does it attract any tds liability on the co,since there is whole monetary payment.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

13 May 2012 TDS will be deducted u/s 194H @10% on such incentive if the customers are selling goods on your behalf. The incentive given to customer is sort of commission on sales and TDS is required to deducted on such payment.

Sale shall be booked at gross amount in your books and the amount paid as incentive will be treated as selling & Distribution expenses.

Kurmi

Kurmi (Querist)
Follow

13 May 2012 Thanks for valuable feedback

Kurmi

Kurmi (Querist)
Follow

17 May 2012 Can you please refer any landmark judgement on the above situation.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

jagadheswar goud

eddanapudi murali

SHIBSANKAR DEY

R Prabhudoss

SANJAY GOSALIA

Subscribe Now

Income tax on sales incentives

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

CA Final

GST CONSULTANCY

GST CONSULTANT

Senior Executive

Accountant