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QUERY OF TDS

BALASUBRAMANYA B N (CCI STUDENT....) (44687 Points)

17 January 2009

HELLO GUYS

I HAVE DOUBT ON TDS COMMISSION, IF INDIVIDUAL AND NOT TAX AUDIT HE WANT TO DEDUCT THE TDS OR NOT NECESSARY..FOR WHOM IT WILL APPLICABLE AND WHAT IS THE PERCENTAGE

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4 Replies

BALASUBRAMANYA B N (CCI STUDENT....) (44687 Points)
Replied 17 January 2009

sorry guys one mistake is there in that first question, is not individual and not tax aduit

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Preetham S L (CA Final Student) (94 Points)
Replied 17 January 2009

Hi Balu,

TDS provisions are applicable to companies, firms and also individuals are liable to TDS in a year when tax audit was applicable to them in preceding financial year, whereas companies and firms are always liable to deduct tax.

TDS on commission is dealt in Section 194H, Rate of deduction is 10% + 3% Cess totalling to 10.3%. The deductor is supposed to deduct surchage of 10% when the payment exceeds 10,00,000 in case of individuals and 1 crore in case of companies.Threshold limit is 2500 p.a.

When you are paying commission on insurance, it is dealt in 194D. Rate of deduction is 10% in case of indviduals and 20% in case of companies. Cess and Surcharge provisions for this section is same as above.Threshold limit is 5000 p.a.