Dear Sir
We had a contract with a XYZ company for paying their salesman salary.
A salary = 10000
B salary 12000
C salary 15000
and so on ......
and we charge a amount of rs 10000 for these payment
Example .Total Amount 190000 +10000 = 200000 + ST
WE ALSO DEDUCT AND PAY ...PROFESSIONAL TAX FOR THESE SALESMAN
Please let me know the TDS will be deducted on whole invoice which include salary or only on our commission part
why 2% . can u pls further explain?
TDS is applicable for gross value of Invoice ( salary component and commission ) @ 10 % under 194 J because as per the mention details people are marketing professional skill ( not the untrained people )..
Service Provider have nature of transaction is contract.
I agree with Naveesh.
In your question, I understood it is re-imbursement of their salary.
To treat it as salary, there should be employer and employee relationship. then only this will attract. Other wise It will fall in other sections like 194J/194C. To determine the section, we need to examine the contract between your service provider and you.
And in you your example 190000 + ST. = 200000. This shows that you are highering the man power services from the service provider. Hence It may fall under the 194C.
If in your contract, If you are giving any specific job like marketing, then it will fall under 194J. (Professional and Consultancy services). Based on your contract, deductability changes.
Bala Pullaiah B
I agreed with the Bala Sir. Skills and nature of job matter while deducting the TDS on bill. Suppose If we can take an example of security services which also similar to the same case but the the manpower supply by security services does not require any skills. but in case of marketing people are trained to achieve the target since the TDS section is 94J.
regrards/Rahul Verma
CAclubindia
