Query on tds u/s 194 h
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 November 2014
Dear Experts,
Our company makes an entry of Commission payable provision on sale of goods by agents
But as per the contract the agents are only eligible for commission on receipt of money from our customers
The company is following the practice of deducting TDS only when payment is received from customer and not when they are creating provisions
Provision Entry:-
Commission Expenses Dr.
To Commission payable
When money is received from customer:-
Commission payable Dr.
To Agent A/c
To TDS payable
which is contradictory to Income tax law as TDS on Commission/Broker is required to be deducted @ 10% at the time of:-
->Making such payment or
->Credit of such income to the account of the payee in the books of the person deducting such TDS
whichever is earlier.
Is the company liable to pay interest on delayed payment of TDS in this case??
please revert...
Our company makes an entry of Commission payable provision on sale of goods by agents
But as per the contract the agents are only eligible for commission on receipt of money from our customers
The company is following the practice of deducting TDS only when payment is received from customer and not when they are creating provisions
Provision Entry:-
Commission Expenses Dr.
To Commission payable
When money is received from customer:-
Commission payable Dr.
To Agent A/c
To TDS payable
which is contradictory to Income tax law as TDS on Commission/Broker is required to be deducted @ 10% at the time of:-
->Making such payment or
->Credit of such income to the account of the payee in the books of the person deducting such TDS
whichever is earlier.
Is the company liable to pay interest on delayed payment of TDS in this case??
please revert...
Amol S Joglekar
(Expert)
14 November 2014
Yes. The company should pay the interest.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Query on effect of registration of property
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Wrong CMPo8 file
- Whether output tax is taken credit by purchaser
- Additional trade name
- Equity Share Sale and Purchase
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
