Hi,
We have appointed a company as an agent to sell our products on our behalf.
The agent will collect the money from the customers, deduct commission due to it from the same, and send the balance amount to us.
Our problem is, how do we deduct TDS u/s 194H as we are receiving only the net amount and are not making any payment to the agent?
Regards
Sanjay
He shld Not Deduct TDS Amt
For
Money Recd 10000/-
his comm 1000/-
tds rate(assumed)10%
he should deduct 900/-
and remit 9100-
therafter u shld deposit 100/- thru 281chalan into C.G Depository
u can deduduct TDS u/s 194H for the amount of commision and tell him to settle his TDS amount to his next commission amount after deducting TDS on next commision amount
Hi You can Just Tell him that the Entire Amount collected from Customer will be send to you and you will pay him commission on monthly basis and give commission cheque after deducting TDS
The best way, you should revise his commission rate and make it net of T.D.S. in this case u need not to deduct tds. On receipt net proceed u just convert the net proceed into gross showing iinto gross proceeds, commission and t.d.s.
Hope this one will resolve your query.
Ours is a retail company. WE keep consignment stock with us. We receive the collections from customer. At the end of month we generate a sales report of that particular vendor.
Presently we remit the vendor as per following manner :
We deduct our commission, service tax on commission and add TDS amount on commission. FRom total monthly collection of vendor we subtract the above amount and remitt.
In this we are facing lot of problem regarding collecting TDS certificate from Vendors, mismatch etc.
Can we instead of paying this to vendor, we retain it and file in the return ?
PLease advice.
CAclubindia
