Sec-194D

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CA Jignesh (Querist)
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22 February 2011 AS per Sec-194D, it is specfically mentioned that no adjustment is possible for any Debit made in Agent's A/c after any credit made for commisioned earned by him. I want know that if concern has refunded the commisioned earned by way of debit made in his account whether is it possible to adjust the TDS deducted earliar on commision credited in later period ?...Please reply me urgent....

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22 February 2011 Query is not quite clear.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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22 February 2011 Jigneshbhai,

On commission earned by an agent, the insurance company has to deduct TDS on monthly basis.

Even if the debit of the agent exceeds commission amount, then also TDS will be deducted.

Debits to the agents a/c are generally made for either of his insurance premium, or for
the adjustment of loan a/c or for any debit arising due to the return of cheque of a party.
These all instances are application of his income.
In no way , the commission income of an agent reduces by such debits.

However, insurance company may adjust TDS
in case more TDS has been deducted by it in the earlier period.

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