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
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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