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tds on sales commission or incentives

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Sales incentive i.e., incentive given as a percentage of sales made to the person himself whether TDS should be made.
Replies (4)
I think this is considered as Commission on sales & thats why the payment as incentive is tax deductible @ 11.33% for companies,firm for individuals or huf payment to them less than Rs. 10 lacs then @ 10.3% & for individual or huf payment more than 10 lacs @ 11.33%. TDS applicable only when payment exceeds Rs. 2500/- in a year as per sec. 194H. These r the rates applicable from 1st june'2007.Before that it was 5.665% , 5.15% and 5.665 % respectively.
iF THE PERSON IS UNDER EMPLOYMENT ,THEN INCENTIVE SHOULD BE ADDED IN THE SALARY AND FIR TDS SECTION 192 IS APPLICABLE.

Yes. Bcoz Comission is paid to Broker or agents and whereas incentive is paid to employee to encourage his job or sales activity. Hence there would not be any TDS on incentive. If Employee salary exceeds his Exempt income limit then TDS may be deducted under section 192B (Other than Govt Employees).

If A Partnership Firm , they Have trading Business , In that Organaisation, Marketting Person  Getting , Regular Salary  & Getting Extra Sales Incentive , It is upper den 2500/- ... Is it required to Deducted TDS @ 94H @ 5% rate ...


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