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Tds on commission

389 views 1 replies

The case is as follows:

We are to pay commission to our consultant for  execution of an event. Want to know how to deduct TDS

Point - 1) The client pays us Rs.100/-

Point - 2 )The client deducts 10% as TDS, so we get Rs.90/-

Now we consultant is entitled for 50% profit , that is  from Rs.100/-

So should pay him Rs.50/- less 10%TDS as per point no - 1

or

Rs.45/- less TDS as per point no - 2

Thanks

Replies (1)

both the case tds liabilitiy will exist (assume threasehold limit crossed).

you can treat this like a sub-contract, (profit margin is not concerned)

take advice from other member also.


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