Dear CAClub Memebers,
I have a doubt regarding the TDS on Sale Commission. As per 194H Section it must be deduct of 10% on Commission or Brokerage if it exceeds Rs. 5000,/-. That is clear for me but the mentioned amout of Rs. 5,000/- is the Fiscal Year or for each bill.
Indeed, my client is paying 5% Sale Commission to the brokers on invoice. Let me tell you in detail my doubt.
- On 24-8-12 Invoiced 50,000/-
- On 1-12-12 Invoiced 50,000/-
- And finally on 28-2-13 Invoiced 75,000/-
Here my client paid Commssion 2,500/-, 2,500/- and 3,750/- consecutively on invoiced dates itself. Here commission is 8,750/-. So, is this amount must be TDSed. or not as it is being paid of on the dates itself.
Please let me know how to tackle this. The Brokers are not the PAN Holder and not in the position to pay the TDS or Heighter 20%. How to save the Brokers.
CAclubindia
