MY ASSESSEE IS PVT LTD COMP AND DEALING IN CLEARING AND FORWARDING AGENT ON BEHALF OF VARIOUS CLIENTS. IT INCURES VARIOUS EXP SUCH AS CUSTOM DUTY, TRANSPORTATION EXP, ETC . ON BEHALF OF CLIENT AND REISE DEBIT NOTE FOR ALL ACTUAL EXPENSES INCURED ON BEHALF OF CLIENT AND RAISE INVOICE FOR HIS INCOME/ COMMISSION PORTION. DOES WE HAVE ANY RULING / NOTIFICATION IN THIS REGARD UNDER WHICH TDS SHOULD NOT BE DEDUCTED ON SUCH DEBIT NOTE RAISED.
tds on reimbusement is not on this case this tds commission or brokerage ifit is morethan 5000 tds orcommission or brokerage isapplicable
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 ` 5,000 (` 2,500 upto 30.06.2010)
Any person, (other than individual or a Hindu undivided family) who is responsible for paying, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, deduct income-tax thereon.
However, individuals and HUF who were covered under section 44AB(a) and (b) in the preceding previous year i.e. whose gross turnover/receipts of the business/profession in the immediately preceding financial year exceeded business/profession in the immediately preceding financial year exceed Rs. 1,00,00,000 / 25,00,000, as the case may be, are also required to deduct tax at source.
Q2. What is the point of deduction of TDS u/s 194H?
Ans. It will be deducted at the time of credit of such income to the account of the payee or to any account, whether called suspense account or by any other name 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.
Q3. At what rate TDS has to be deducted u/s 194H?
Ans. The rate of TDS shall be 10%.
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