TDS on debit note issued by purchase party
This query is : Resolved
Jay Kothari
(Querist)
12 March 2011
dear sir ,
One of my client sales goods to a person.That person told my client to give him commission on invoice.For this that person has issued debit note . Is my client required to deduct TDS on commission amount paid by him.
Thanks and regards
Jay
One of my client sales goods to a person.That person told my client to give him commission on invoice.For this that person has issued debit note . Is my client required to deduct TDS on commission amount paid by him.
Thanks and regards
Jay
14 March 2011
From your question it appears that the purcaser and the persoon who has got the commission is one and the same, which cannot be. There should be a principal and agency relationship exists for one to get a commission payment. Were any amount is being paid back to the purchaser against the purchases made by him then it can be said to be a discount and not a commission. Your client shall give a credit note to the purchaser stating the amount clearly as discount to avoid any possible disputes latter on
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