CA Final Student
94 Points
Joined June 2008
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.