TDS

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Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 In case a company has appointed another company as a selling agent with the agreement that company will always transferred the good to the agent by deducting his commission which is 1% & selling agent has /can add this 1% while selling the material .is this commission amount will attract TDS & what will be the date of credit/payment ,means the date of transferring of goods?Also the agent has to charge service tax also?

CA.Madhusudan B.P.

CA.Madhusudan B.P. (Expert)

19 November 2010 Its commission, tds has to be deducted.
TDS shall be deducted either at the time of payment OR crediting to the account whichever is earlier.
I don't think service tax is applicable.

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 But if the company change the words by mentioning it as `company will transfer the material /sell the material to the selling agent at a price will be 1% less then their normal selling price ,& selling price can add this 1% while further selling (which with company`s resale price list).So will it make any difference?specially in case company is not showing commission as expenses in their P & L ,instead booking sale directly at a price which is less by 1%.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

20 November 2010 In case the selling price is governed by the Company in the given circumstaneces it will be a transaction of Commission or Discount Allowed in the form of Commission.

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