TDS on payment of Commission or Brokerage (Sec.194H)

Person Responsible to Deduct Tax:

Any person, not being an individual or HUF whose accounts are not subject to tax audit in the preceding year.

Category of Payee:

Any person resident in India.

Rate of Deduction of Tax:

10%

Note: TDS has to be made on total payments inclusive of service tax.

No TDS

  1. Amount of payment in aggregate not exceeding Rs.5000/- during the financial year.
  2. Any commission or brokerage payable by BSNL / MTNL to their Public Call Office Franchises.

Time for Deduction of Tax:

At the of the credit to the account of payee or payment, whichever is earlier

Time for Deposit of TDS:

In case of deduction by or on behalf of Government, on the same day.

In all other cases:

  1. If the amount is credited on the last day of the accounting year- within 2 months from the end of the month in which it is credited.
  2. Other cases- within 1 week from the last day of the month of tax deduction.
  3. The assessing officer may in special cases, with the approval of JCIT, permit the payment of TDS quarterly i.e., 15th July, 15th Oct., 15th Jan., and 15th April.

Deduction of Tax at Lower Rate or Non-Deduction of Tax:

Application of Form No. 13 shall be made to the assessing officer.
Certificate in Plain Paper shall be issued by the assessing officer to the assessee.

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