TDS on rebate and Discount

This query is : Resolved 

Querist : Anonymous (Querist) 18 November 2009

My Client has given Credit Note for Rate difference to Commission Agent Whether TDS Provisions are attracted to the Rate Difference . TDS Applicable under which section

Ankit Garg (Expert)
18 November 2009

There is no TDS for the rate difference of material.
If the rate difference is of contract, interest or others on which TDS is to be deducted (Section 192, 193, 194, 194A, 194B, 194C, 194D, 194E, 194EE, 194F, 194G, 194H, 194I, 194J, 194LA, 195, 196B, 196C, 196D), TDS will have to be deducted as per the related provision.

Querist : Anonymous (Querist) 18 November 2009

My client is paying commission or brokerage to agent who is selling my product now because of our rate difference My Client agreed to give rate difference to agent and for the same the credit n ote of Rs.28000 has been issued whether TDS Provision are attracted on Rate Difference

Rahul Vora (Expert)
19 November 2009

It depends on the relation you have with commission agent. If you sell the goods to the commission agent and inturn he further sells in the market, then no TDS is deductible on the rate difference. But, if the relation is purely principal & agent, like he only gets the commission, then the rate difference given to the agent will be additional commission and the same rate of TDS will be applicable for commission and brokerage which you have deducted previously.

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