We are a general insurance company, and we procure business through brokers. As per nomenclature of the codes, Section 194D is for TDS on insurance commission, whereas Section 194H is for TDS on brokerage. We deduct tax taking the section by letter, i.e. 194H.
However, the certifcate for lower deduction of tax u/s. 197 has been submitted by few brokers for lower deduction u/s. 194D. Therefore we are facing default for short deduction when we file return u/s. 194H, and our auditors raise query if we file u/s. 194D
Can anyone shed light regarding which code tax to be used for deduction on payment to insurance.brokers
CAclubindia
