tds

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Dipankar Mukherjee (Querist)
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27 March 2009 A sales profeesional receiving consultancy fees for providing sales promotion related services to the company.Does it attract TDS?If yes under which section?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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27 March 2009 I think this is considered as Commission on sales & thats why the payment as incentive is tax deductible @ 11.33% for companies,firm for individuals or huf payment to them less than Rs. 10 lacs then @ 10.3% & for individual or huf payment more than 10 lacs @ 11.33%. TDS applicable only when payment exceeds Rs. 2500/- in a year as per sec. 194H.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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27 March 2009 Yes, it will attract TDS u/s 194J, TDS of professional Services @ 10% + Surcharge (if applicable) + Cess.

Commission on sale can be considered only if he is receiving the amount, only when their is increase in sale, and the same is mention in agreement.

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