LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Tds on commission

Remya.G (Accounts Executive) (34 Points)

30 October 2012

Hi,

We are a software company dealing with development and sale of our own software. We are giving 20% commission to agents on each sale. Are we liable to deduct TDS on them, if yes whats the rate of TDS? Whether the agents has to raise invoice on the same? Please help.

Reply
Follow
Share

8 Replies

Prashant (Assistant Manager) (38 Points)
Replied 30 October 2012

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

2 Like

Yogesh Kumar (Job) (180 Points)
Replied 30 October 2012

TDS @ 10% under section 194H

1 Like

SekharPadala (Dy. Manager Accounts & Finance) (36 Points)
Replied 30 October 2012

TDS 10% UNDER SECTION 194H

1 Like

Lokesh Rao (sr associate ) (45 Points)
Replied 30 October 2012

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.

1 Like

Yogesh Kumar (Job) (180 Points)
Replied 30 October 2012

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.

1 Like