Yes, liable to deduct TDS ...
Assesee gross commission receipt in f.y. 23-24 were 3.5 cr and not liable to audit under 44ab
Have reported to paid 2.25cr commission to others ( approx 10 parties 20 to 40 lakh each)
Tds not deducted
Whether limit of gross receipt in proceeding financial year of 1 cr applicable
Or only threshold limit for tds applicable
Or both
Both conditions apply ........................
Assesee is arguing that he is not liable as not auditable under 44ab
Further section 194D specify the threshold limit of 15000
No proviso given in 194D regarding turnover limit
What is the exact status in such condition
It means for commission is below Rs. 15,000/- TDS will not apply.
But if aggregate of payment exceeds 15K, TDS on total payment will apply...
Refer:: https://charteredhelp.com/tds-applicability-on-proprietorship-firm/
https://carajput.com/blog/new-turnover-threshold-for-the-purposes-of-tds-applicability/
https://www.tataaia.com/blogs/tax-savings/section-194d-income-tax-act.html
The assessee is an insurance agent and out of his commission for insurance policy paid an amount of insurer as subvention to client (in nature of rebate to cliet procure high amount of insurance for example 2 or 3 cliet is paid 40 lkh )
These amount paid to client the assessee claimed as expenses commission paid to others.
Q1 whether these receipt in the hand of insurer is treated his income or taxable in his Hand ,, no tds was deducted by the payer
Q2 whether this transaction is just an application of money and not considered as business expenditure and fully taxable in the hand of insurance agent only
Or any other view
Depends upon nature od both assessee and terms of agreement between them.
This receipt in hand of insurer is not his income
No written agreement ,
Is allowable expense in the books of agent
Expenses subject to TDS are generally not allowed if TDS is not deducted. (Expense disallowed under Sec 40(a)(i)/(ia))
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