TDS on commission

dear friends

one of the company has paid commission after deducting tds to other firm in cash upto Rs 5 lakhs. Is the commission allowed as expense under income tax act.

Replies (9)

cash paid by way of tax to govt. authority is an allowed expenses under Section 40A(3) of the Income Tax act, 1961

regards,

ratan

But in this case it is not clear to whom the payment has been made. In my opinion, it should be disallowed.

if commision amount is paid in cash is more than Rs.20000/- it is disallowed though proper TDS is deducted........

tds on commission is 10%

 T.D.S. on commission is 10%  if is  paid in to other firm after deducting amount of T.D.S it  is 

disallowed under sec 40 (A) 3 of income tax act act 1961

Heelo

Whole of the amt of Commission shud be disallowed as per Sec 40A(3)

Thanks

Commission will be disallowed as per sec 40A(3)

 Yup rito the commission will be disallowed as it is a expense and any expense paid in cash above 20,000 is disallowed u/s 40A (3)...... whether proper TDS has already been deducted & deposited.........

There are some exceptions to sec 40 A (3), see rule 6 DD and see if the payment appears in one of those payments.

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