TDS on incentive

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  1. Abhinay_Tiwari

    Abhinay_Tiwari New Member

    Dear Sir,
    I am working as an advertisement agency who procures the ads for a newspaper. I also make payment newspaper for the ads after deducting 15 % commission.
    Now the the FY 15-16, for the good work and support the newspaper company is giving me an inventive on the basis of my work done in this FY.
    Please suggest whether the newspaper company can deduct TDS on such incentive, at what rate and under which section.

    Regards
    Abhinay
     
  2. INVESTURU

    INVESTURU Member

    Yes, U/S 194H Of income tax act, 1961, newspaper company can deduct TDS if amount of commission received by you, exceeds prescribed limits that amount to Rs. 5000 but w.e.f. FY 16-17, this limit has increased to Rs. 15000. Rate of TDS will be 10%.
     
    Last edited: Jun 5, 2016
  3. INVESTURU

    INVESTURU Member

  4. ZED

    ZED Well-Known Member

    I agree with @INVESTURU , this incentive will also form part of your commission for the purpose of computing TDS amount.

    I wish to know how the payment is made since you said.
    How the provisions of S.194 C are being followed in this mode.
     
  5. INVESTURU

    INVESTURU Member

    Sorry, i have written 194C by mistake.......it is 194H.....I have been rectified.
     
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