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TDS on agency fees ! Urgent

TDS 4265 views 6 replies

TDS on agency fees will be deducted u/s 194J or 194C ?

Eg: Mr. A is an owner of electornic retail shop. here Mr. B has brought Mr.C for purchase of some items from A. C purchase some item to the extent of Rs 20 Lacs. after this Mr. B is asking an lumsum agency fees of Rs. 250000 from A. so want to know whether Mr. A should deduct tds under which section. ?

Replies (6)

wrt your example i suggest ut must be taxed under 194 C and it has got nothing to do with 194 J

Sriram,

Wouldnt it fall under 194H i.e.other commission/brokerage?

neither 194C nor 194J. there is a separate provision in the Act for tds on agency fee i.e. sec 194H (commission).

remember, nomenclature is not relevant. what is relevantis the nature of payment.

agency fees is a comission u/s 194H and hence tds is deductible under that section only.

yeah navneet is rite

yes..tds wl b deductible u/s 194H

First of all you should understanding applicability of section 194C,J and H. section 194C is applicable in case of works contract/labour contract etc. 194J is applicable on professional payments and section 194H is applicable on payment to an agent. As per fact of your case, Section 194H will be applicable.


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