TDS on Commission 194 H

In which 15000 theresold limit has been given. Is it only applicable to a single invoice or is it applicable to the entire monthly bill? please guide
Replies (2)
Quick Summary
This discussion clarifies the £15,000 threshold for Tax Deducted at Source (TDS) on commission payments under Section 194H. The consensus is that the £15,000 limit applies to the aggregate of payments made to a payee within a financial year, not just a single invoice. Therefore, TDS should be deducted once the total payments for the year exceed this amount, regardless of whether it's from one or multiple invoices.

"Provided that no deduction shall be made under this section in a case where the amount of such income or, as the case may be, the aggregate of the amounts of such income credited or paid or likely to be credited or paid during the financial year to the account of, or to, the payee, does not exceed fifteen thousand rupees."

So, when the total payment crosses 15k, deduct TDS, if applicable.

It can be a against a single invoice or multiple invoice, that doesn't matter. Just check the total payments made in a FY for applicability.

It applicable on both single and lump sum amount

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