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our company started a new office for rental near by our plant for this we given brokerage charges to vendor this service comes under which section under tds
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TDS on brokerage commission charges
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Section 194H of IT act deals with TDS deduction on the payment of commission or brokerage.
It mandates tax deduction by the person (other than individual/HUF) responsible for paying commission or brokerage to resident persons at the rate of 5% when the amount exceeds Rs.15000 in a year.
But it is the company not resident person
Then Deduct TDS U/S 195 as per applicable rate
| Originally posted by : sujin | ||
 |
But it is the company not resident person |  |
Normally a ‘Person’ refers to an ‘Individual’, however under Income Tax, the person has broader meaning and coverage. For the purpose of charging Income-tax, the term ‘person’ has been defined under Section 2(31) of the Income Tax Act, 1961 to include Individuals, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any Artificial Juridical Person (AJP).
Sec 194H applicable and vendor will deduct TDS.
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