There is shortage of chillar(one or two rupee coins) in our company so we used to pay Rs.100 note and receive 95 coins of Rs.1 for chillar requirement. Means we are paying additionally Rs.5 on such transaction. Whether such extra payment is in the nature of commission & TDS is required to be deducted on such extra payment u/s 194H on commission?
You are paying Rs.5 to whom who will provide you Chillar. Commission for T.D.S purpose shall be for Services rendered (Other than Professional Services). In the above case there is no service rendered by him. He indeed provide you Chillar which is Tangible and getting profit of Rs.5 for every 100. Hence no need to deduct T.D.S u/s.194H
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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