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TDS

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(Querist)
08 October 2010 In a Cellphone manufacturing company (China Mobiles), giving incentives and scheme discounts on fulfiling sales targets to its agent and distributors. These incentives and bonus is in the form of cash, fridge, Bike, Car etc.

) Do we need to deduct TDS?
2) If answer to point 1 is yes then under which head should we deduct TDS?
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CMA. Subhash Kumar Jha

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CMA. Subhash Kumar Jha (Expert)
08 October 2010 Yes.... Under 194 H (Commission)
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CA Shailesh +91 9393926464

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CA Shailesh +91 9393926464 (Expert)
08 October 2010 In my opinion, TDS is not applicable
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Amit Agarwal

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Amit Agarwal (Querist)
08 October 2010 Thank you Subhash Sir. However i will request Shailesh Sir to clarify his answer.
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UMA SHANKER SHARDA

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UMA SHANKER SHARDA (Expert)
09 October 2010 If incentives are paid in cash, than it will attract TDS under the head Commission. But if it is paid in kinds, than the company shall book these expenses on business promotion and as per my opinion need not require deduction of tax. futher clarifications on this are welcome.
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