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TDS on commission

yatish kotiyan (Articled Clerk) (372 Points)

26 September 2009

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.

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9 Replies

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 26 September 2009

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

CA.Tarun Maheshwari (CA, DISA) (7150 Points)
Replied 26 September 2009

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

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 26 September 2009

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

karthik (audit staff) (87 Points)
Replied 26 September 2009

tds on commission is 10%

rajesh (C.A) (36 Points)
Replied 26 September 2009

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

Have a lot to achieve (C.A. B.Com(H)) (101 Points)
Replied 26 September 2009

Heelo

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

Thanks

(Guest)

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

Jagriti Kapoor (CA- Final) (71 Points)
Replied 26 September 2009

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.........