Tds on commission

Hi Remya,

1. you have to deduct TDS @ 10% u/s 194H (commission/ brokerage)

2. its always better to take invoice from the agent

Regards

TDS @ 10% under section 194H

hi,

I have one doubt regarding wheather to calculate commission on Net billings effected by agent (excluding service tax) or Bill ammount including service tax. Which one is usually followed in sofware industry. 

In section 194h words mentioned are any income by way of commission and income does not include service tax, so TDS should be deducted on commission exculding service tax. But in industry inclusion of service tax followed and TDS will be deducted on gross amount.

TDS to be deducted on amount including service tax in all cases except rent (194I).

Regards,

Lalit Dhabria

you can  Download TDS Rate Chart..

/share_files/tds-rate-chart-12-13-51962.asp#.UJC78bG-rXA