SECTION 194H: TDS ON COMMISSION

SECTION-194H TDS ON COMMISSION

Section 194H TDS on Commission
  • Meaning of Commission  : Commission includes any payment received or receivable , directly or indirectly, by a person working on behalf of another person for services rendered (except professional services) or for any kind of services in the course of buying or selling or in relation to any transaction relating to any assets, valuable article or thing except securities.
  • TDS on commission is deducted by a person for payment made or credited in the account of Commission or Brokerage to a Resident.
  • This section does not includes the following payment as commission or brokerage :
  1. Insurance Commission.
  2. Payment is less than Rs.15000/
  3. Payment is being made by BSNL OR MTNL for their public call centre franchise.
  4. Commission is being paid employer to his employee. This is liable to deduct the TDS as TDS on salary.
  • TDS is payable on Commission and not on GST.

CONDITION OF DEDUCTION

  • All person, other than Individual or HUF, responsible to pay the Commission or Brokerage is liable to deduct the TDS at the time of payment of credit.
  • Individual and HUF are responsible to deduct the TDS on payment of Commission  if they are liable to conduct the Tax Audit U/s 44AB of I.T.Act,1961
  • TDS on Commission or Brokerage is applicable when the payment of Rent exceeds of Rs.15000/ per year.

RATE OF DEDUCTION

Commission or Brokerage                         : 5%

Leave a Reply