Tds from commission

TDS is not applicable.

provisions of sec. 194H could not have been met i.e. it not amount to commission.

It is only recovery of Bad debts.

I my friends are not taken into account the basic concept of Accountancy; that means B owing to me but I recovered my bad debt from X. I think it is better to have expert opinion

TDS is applicable only if you are crediting or paying income to the recepient and not when you are recovering money from anyone even if he receives money from you in form of any income on which TDS is applicable.

You have to deduct TDS only on the commission you credit to the brokers account. From the amount credited after TDS you can make any recovery but that recovery is not subject to TDS.

The Flow:-

Credit Brokers account with commission and recover and deposit TDS as that is his income u/s 194H.

Debit the amount recoverable from broker from whatever balance you have of his. If not sufficient, broker will have to pay to you the shortfall.

So, it is cleared that if you credit your broker Account then you have to deduct TDS, so I still think TDS applicabe in this case.

You have to deduct TDS only on the commission you credit to the brokers account. You can make any recovery from broker but that recovery is not subject to TDS.

Dear  Sir,

My Mother have a Agency of Recuriing Deposit (Post Office), so i would like to the information that my mother received the commission & the post office deducte the tds on basis of commission (rules 194h)

So, plz give me the information, how can i  tds amount refund

plz suggest me what is the procedure for that

plz reply me as soon as possible.

Thankiny you,

From,

Ketan Surani