Tds

Dear sirs

In our case , the assessee is a distributor of recharge coupons. The cellular companies deduct tds on scheme provided to the assessee under section 194h. but the scheme is directly transferred to retail dealers account.

  1. How to treat the same in accounts?
  2. Whether scheme received  is assessee’s income?
  3. Whether scheme provided to retail dealers can be claimed as expense of assessee? And tds is deductible?

Kindly reply me its very urgent

Replies (1)
Only commission income is that of the assessee. The dealer is only selling on behalf of the network provider. The balance in dealer account is only advance from the company.which is repaid against the recharges made. Thus it will act as advance from creditor account.

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