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Tds sec 194-h

1005 views 3 replies

Pranjal Srivastava

28 Points Posted on 19 June 2014

Kindly suggest me abt TDS u/s 194-H in follwing situation

if a company where sale also took place by finance through private financier wants

to motivate the sales team of private financier (like mahindra, hdfc ,icici etc) initiate an incentive scheame target orianted by way of travell vouchers liable to deduct tax at source u/s 194-H on that incentives

Replies (3)

Rohit Verma

CA Final

39 Points Posted on 19 June 2014

Query not clear.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 19 June 2014

nothing is clear what you want to ask. make your query clear.

muralikumar

Manager Taxation

23 Points Posted on 21 June 2014

Dear friend,

TDS 194H attracts on commission or brokerage any payment received or receivable directly or indirectly, by a person acting on behalf of another person:

1. For service rendered ( other than professional Services) or

For any services in the course of buying or selling of goods or in relation to any transaction relating to any asset valuable article or thing, not being securities.

If the income is credited to any account, whether called "Interest Payable Account" or Suspense Account" or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be credit of such income to the account of the payee. TDS should be deducted accordingly.

TDS 194H to be deducted when

1. There is aggregate payment does exceed Rs 5000/- during the financial year.

2. Any commission or brokerage at the time of payment or credit, whichever is earlier.

In your case travel does not attract TDS...