Consignment agent

R/Sir

There is a company , which is manufacturing FMCG Product in india . The company has appointed one Consignment agent in USA . The company has fixed 10% of sales made by consignment agent in usa , as the amount which will be paid to usa towards its commission , selling expenses , travelling expenses . The company does not ask for the telephone expenses , selling expenses travelling expenses that may have incurred by Consignment agent , but paid the amount within the overall limite of 10% . Will Indian Income tax A O allow the expenses of 10% as per the agreement between the company and consignment agent .

Regards

D Soni 

Replies (2)

HI DEVANSH

 

IT IS ALLOWED AS AN EXPENSE, PROVIDED U DEDUCTED TDS U/S 194H ON ALL THE AMOUNTS CREDITED OR PAID TO CONSIGNMENT AGENT. AO WILL NOT CREATE ANY PROBLEM TO ALLOW U DEDUCTION SUBJECT TO THE SATISAFACTION OF TDS PROVISION. IF TDS IS NOT DEDUCTED OR AFTER DEDUCTING NOT REMITTED OR SHORT TDS DEDUCTED OR REMITTED TO GOVT. BEFORE THE DUE DATE OF PAYMENT IN ACCORDANCE WITH SECTION 40(a)(ia), COMMISSION PAID WOULD BE DISALLOWED.

 

 

REGARDS,

 

MANOJ

HI DEVANSH

 

IT IS ALLOWED AS AN EXPENSE, PROVIDED U DEDUCTED TDS U/S 194H ON ALL THE AMOUNTS CREDITED OR PAID TO CONSIGNMENT AGENT. AO WILL NOT CREATE ANY PROBLEM TO ALLOW U DEDUCTION SUBJECT TO THE SATISAFACTION OF TDS PROVISION. IF TDS IS NOT DEDUCTED OR AFTER DEDUCTING NOT REMITTED OR SHORT TDS DEDUCTED OR REMITTED TO GOVT. BEFORE THE DUE DATE OF PAYMENT IN ACCORDANCE WITH SECTION 40(a)(ia), COMMISSION PAID WOULD BE DISALLOWED.

 

 

REGARDS,

 

MANOJ

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