tds on commission

Threshold limit for payment of comm./brokerage u/s 194H is Rs. 2500/-. In your case tax is required to be deducted as it exceeds the statutory limit. Applicable rate if the payee are individual would be 10.30% if the income of the individual is less than 10 lakhs and 11.33% if the same is in excess of Rs. 10 Lakhs.

What is Mr.Mahendra said in above is correct. If u have not deduted TDS the entire commission will not be allowed as a Expenditure.

The Commission will be disallowed

According to section 194H of the Incometax Act, Any person, not being a individual or hindu undivided family, who is responsible for paying, on or after 1st day of June,2001, to a resident any incime by way of commission (not being insurance commission referred to in section 194D)or brokerage,shall, at the time of credit of such income to the account of the payee or at the time of payment of such income in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rate of 10%. 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 Rs. 2,500/- Provided also that no deduction shall be made under this section on any commission or brokerage payable by Bharat Sanchar Nigam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees. Add surcharge to the tax, as applicable which is presently at 3%.

i too have the same view as above.you have to deduct the tds and deposit the same in due time.

i totally agree with Mr. Mahendra. tds have to be deducted.......

Even you can remit now with interest u/s205A?and file belated tds return.If done you can claim the expenses