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TDS - Intermediary services

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Vinothkumar C

Accountant

78 Points Posted on 17 April 2023

Dear Experts,

For Example – S enterprises want to sell their Machinery for this purpose they hire a Mr. A & give him the task to find a suitable buyer. Mr. A finds & brings K enterprises a suitable buyer that is looking to buy machinery. Mr. A facilitates the whole transaction and charges commission for his services.

In this case, there are three Parties involved S enterprises, K enterprises & Mr. A.

The main supply is the Sale of Machinery. Supply of service provided Mr. A is providing intermediary services as he was merely arranging or facilitating the supply of Machinery.

A issued Invoice Mr. S Value Rs.3,50,000/- + GST @ 18%

Mr.S Ask (TDS Applicable or not) If applicable under which section pls share your suggestion any related notification or circulars...

Replies (3)

Quick Summary

This discussion explores whether Tax Deducted at Source (TDS) applies to intermediary services. Specifically, it questions if Section 194H, related to commission, is applicable when an intermediary like Mr. A facilitates a machinery sale between S enterprises and K enterprises, charging a commission for his role.