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Applicability of TDS on charges deducted by payment gateway company

RAVI JAIN (Accounts Manager) (80 Points)

12 May 2016

Hi to All

I am Facing A problem, Some Payment Gateway Company Like Pay U Money, Ola Money, Insta Mojo is Paying us after deducting their Fees and Service Tax on Before Making Payment,

I want To Know That is TDS u/s 194H is Applicable ? and How To Recover amount of TDS since they are deducting their Fees before Making us Payment ?

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2 Replies

Nikhil (Business) (32 Points)
Replied 07 August 2016

I am also looking for answer to above question. Ravi, did you find any answer to above question?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160337 Points)
Replied 07 August 2016

TDS on Commission or brokerage is to be deducted u/s 194H on any income by way of commission or brokerage, when aggregate payment exceeds Rs. 15,000/- (effective 01-06-2016.) at rate 5%. (Prior to 01-06-2016 it was above 5000/- at rate 10%)

So the Deductor shall issue TDS certificate for each quarter, downloaded from TRACES. The amount you can adjust from your tax liability, by filling IT return for the corresponding year. Excess amount can be claimed as refund.