Is tds deductible on proprietorship company bill

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2012 Hello,

I am running business of real estate consultancy service and i am the proprietor of this company. My income in around 4-5 lacs from real estate consulting (broker).

I have completed one real estate deal and my client has to pay me Rs. 75 thousand as brokerage. Now he is telling me that he will deduct around 10% TDS from my payment.

As per my knowledge I am proprietor and if he issue a check and i give him my personnel PAN number they are supposed to deduct only 1% TDS from the payment.,

Please advice.

Thanks,

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 April 2012 You are not correct dear. Brokerage falls under section 194H and rate of TDS is 10% irrespective of whether it is company or firm or individual or any other entity. If you provide PAN they are liable to deduct TDS @10%. In case PAN is not given they will have the liberty to deduct TDS @ 20%.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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16 April 2012 The person who is dealing with you is correct and you are liable for TDS as you have earned brokerage. The expert has given you the correct reply and I agree with him

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