Hi everyone,
I would like to know that whether TDS on cash withdrawal is applicable for commission agents (agricultural produce), where the payments will be made by cash to farmers.
Comments are welcome
k venkataramesh (employee) (35 Points)
29 August 2019Hi everyone,
I would like to know that whether TDS on cash withdrawal is applicable for commission agents (agricultural produce), where the payments will be made by cash to farmers.
Comments are welcome
Shivam RC
(Student)
(23683 Points)
Replied 29 August 2019
Vishal Gupta
(4 Points)
Replied 16 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 16 September 2019
1. Sec 194N is introduced to discourage cash withdrawal in excess of Rs.1 Crore at a time during the previous year will require the banking company to deduct TDS @ 2% of the sum exceeding Rs. 1 crore.
2. There is no exemption provided to the above section. Hence, it is equally applicable to an assessee engaged in agricultural activity.
3. This provision will be applicable from 01.09.2019.
Please correct me if the above solution has an alternative view.
Kapadia Pravin
(17259 Points)
Replied 22 September 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 22 September 2019
1. Accept with Mr.Pravin, the new notification dated 20.09.2019 which exempts commission agents and traders who are registered under Agriculture Produce Marketing Committee (APMC) are exempted from the purview of sec 194N.
2. In your case, if the commission agent is registered under APMC of the concerned state or operating under APMC, then sec 194N relating to deduction of tax @ 2% for withdrawal of more than Rs. 1 crore will not be applicable.
Please correct me if the above solution has an alternative view.
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