Tds on payment of commission by an agent to sub agent
This query is : Resolved
19 December 2015
SIR,
A PERSON IS AN AGENT OF AN INSURANCE COMPANY AND HE RECEIVES INSURANCE COMMISSION ON WHICH TDS U/S 194D IS DEDUCTED BY THE INSURANCE COMPANY.
THAT PERSON ALSO PAYS COMMISSION TO HIS SUB AGENTS.
CAN ONE PLEASE TELL ME WHETHER TDS ON PAYMENT OF COMMISSION BY AN AGENT TO HIS SUB AGENT IS COVERED UNDER SECTION 194D OR 194H?????
PLEASE CITE RELEVANT CASE LAWS TOO......
THANKS IN ADVANCE.
A PERSON IS AN AGENT OF AN INSURANCE COMPANY AND HE RECEIVES INSURANCE COMMISSION ON WHICH TDS U/S 194D IS DEDUCTED BY THE INSURANCE COMPANY.
THAT PERSON ALSO PAYS COMMISSION TO HIS SUB AGENTS.
CAN ONE PLEASE TELL ME WHETHER TDS ON PAYMENT OF COMMISSION BY AN AGENT TO HIS SUB AGENT IS COVERED UNDER SECTION 194D OR 194H?????
PLEASE CITE RELEVANT CASE LAWS TOO......
THANKS IN ADVANCE.
KAVIRAJA ADDANGADI
(Expert)
19 December 2015
If Sub Agent is Not insurance Agent you can deduct u/s 194H
Ankur Singhal
(Expert)
19 December 2015
Dear Kavi raj
Section 194D read as below states any person paying to a resident there is no use of word like insurance agent.
Hence in my opinion Deduct TDS under section 194D
194D. Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon
Section 194D read as below states any person paying to a resident there is no use of word like insurance agent.
Hence in my opinion Deduct TDS under section 194D
194D. Any person responsible for paying to a resident any income by way of remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance) shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon
KAVIRAJA ADDANGADI
(Expert)
21 December 2015
Sec. 194D is for payment of insurance commission whereas Sec. 194H is for brokerage and commission (not being insurance commission).
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