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Incentive paid to Sale Consultant

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Sangavi

Student CA IPC / IPCC

30 Points Posted on 15 February 2021

Dear Sir/Madam,
We have recruited Sale Consultant and monthly we are making consultancy fees to them.
And as per agreement we have to pay incentive to them if they achieved that target.

Kindly confirm whether TDS applicable in this scenario.

If yes kindly confirm the section and the Rate of tax to be deducted.

Replies (6)

Quick Summary

This discussion clarifies the applicability of Tax Deducted at Source (TDS) on incentives paid to sales consultants. It confirms that incentives are generally treated as commission and therefore fall under Section 194H of the Income Tax Act. TDS is applicable if the total incentive payment exceeds £15,000 in a financial year, with specific rates depending on whether the recipient is an individual/HUF or another entity.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 15 February 2021

Yes tds to be deducted under 194j @ 10 percent

yasaswi gomes

My grammar is 💯 good I

5110 Points Posted on 15 February 2021

No TDS to be deducted on discount allowed and incentive given to distributors/dealers.

tds applicable on commission and brokerage above fifteen thousand ₹ at old rate is five percent. New rate from 14-5-2021= Three point seven five percent this is for individuals and hufs. Others tds rate is five percent