Tds on incentive given to distributers of company a


This query is : Resolved 

(Querist)
20 March 2015 Query
in my query there is 3 Companies A,B & C
A is a Foreign Company
B is a Indian Company
C is a Indian Company

Company A has to paid incentive to company C But Company A want to pay incentive through company B
Company A PAY TO COMPANY B Without Deducting TDS for this Transaction Company Give Some Fees to Company B
So Company B shall Deduct Tds while making payment to C?????
Which section????
Relevant case laws???
Thanks in advance?


20 March 2015 tell me exactly what payment is made means wat and y incentive is to be paid for above companies

nikhil arora (Querist)
20 March 2015 Incentive means Selling goods on there shop or site BY COMPANY C
every sale of Pcs get Incentive from company A AND company B has to made payment on behalf of Company A

20 March 2015 do u mean to say commision? then refer sec 194H

nikhil arora (Querist)
20 March 2015 yes its is commission or incentive but foreign company did not deduct TDS
Should Company B deduct TDS on this ???
Beacause Company B is only paying the same amount on behalf of Company A
But Company C Receiving that incentive is a income
Should Company B deduct ???

20 March 2015 if conditions mentioned u/s 194H are satisified like the min amount of 5000 and there is employer employee relationship then only tds is applicable else not


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