Tds on comission

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 October 2012 CO SELLING PRODUCT ON ANOTHER WEBSITE....FOR EXAMPLE ON E-BAY WEBSITE........PRODUCT SOLD...EBAY WEBSITE PAID AMT....AFTER DEDUCTING THEIR COMISSION & TRANSACTION CHGS ....RAISE INVOICE WITH SER TAX.....

MY QUE.......AFTER DEDUCTING THEIR COMISSION ...WE RECD AMT.....ON WHICH ...WHO IS LIABLE TO DEDUCT TDS.?????

SECOND QUE.....ON TRANSACTION FEES.....THEY CHGS SER-TAX.....ON WHICH TDS LIABLE.....WHOSE RESPONSIBILITES....

AS ON BOTH ABOVE CASES.....WE RECD AMT...AFTER DEDUCTING...THIER COMMISSION & OTHER CHGS.....

HOW WE DEDUCT TDS......THEY WILL NOT REFUND US...????

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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30 October 2012 you are laible to deduct tds..you have to gross up the amount ..you have to bear the tax on ur own..for example u paid rs..100 to them and tds rate is 10%..the gross amt is 100*100/90

Message likes : 1 times

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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11 November 2012 Pooja is correct but the actual problem is the company receives net payment which does not include TDS nor they get any bill after charging service tax.

The option available is let the company send the debit note and call for payment made for tDS and take the credit for service tax accordingly.

It is important to note the clauses in the agreement with e-bay. If there your company has agreed to bear the cost of TDS then your company will have to bear it and pass on the credit to E-bay. There is nothing impossible to talk with ebay for TDS amount I think they will agree and they will also give you bill after charging service tax.

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