section 194H

TDS Section 194H – Whether on Payment of Commission or on Discount Given? Open Issue for more than 15 years?

Income Tax - TDS Section 194H – Whether on Payment of Commission or on Discount Given? Open Issue for more than 15 years. Dear Friends and Professional Colleagues, recently have read one cases law on Income Tax TDS provision, after reading the case surprised to notice, there is no clarification on this matter for more than 15 years. […]...

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Section 194H – TDS on Brokerage or Commission

Income Tax - Section 194H contains guidelines about tax deductions on the amount paid as brokerage or commission. Entities making a payment as commission or brokerage to a resident have to make a tax deduction at a 5% rate. This amount has to exceed Rs. 15,000 in one financial year otherwise individual/HUF are not responsible to deduct TDS. However, ...

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TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax - Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

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Section 194H TDS on Commission & Brokerage- Analysis

Income Tax - Who is responsible to deduct tax u/s 194H? Any person, (other than individual or a Hindu undivided family) who is responsible for paying, to a resident, any income by way of commission (not being insurance commission referred to in section 194D) or brokerage, shall, deduct income-tax thereon....

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Section 194H TDS on Commission and Brokerage with Case Laws

Income Tax - Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. (Section 194H does not include insurance commission referred to in section 194D.) Individuals/HUFs who were covered under section 44AB(a) and (b) in the preceding previous year i.e. whose gross turno...

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SC ruling on Section 194H TDS on actual gross fare charged by travel agents

Singapore Airlines Ltd. Vs C.I.T (Supreme Court of India) - Singapore Airlines Ltd. Vs CIT (Supreme Court) Whether an airline is responsible for deducting tax at source in respect of supplementary commission which an agent is paid on the difference between the actual fare and the net fare- Section 194H of Income-tax Act, 1961 analyses including whether liabi...

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Section 194H TDS not deductible on payment of credit card commission to banks

Indian Hotels Company Limited Vs ACIT (ITAT Mumbai) - ITAT Mumbai held that Commission to bank on payments received from customers who had made purchases through credit cards is not liable to TDS under section 194H of Act....

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No TDS on discount on Sale of Prepaid SIM Card to Distributors

Dickson Electronics Vs ITO (ITAT Amritsar) - Dickson Electronics Vs ITO (ITAT Amritsar) It is seen, that the judicial view of the various High Courts is divergent regarding the deductibility or otherwise of tax on discount allowed to distributor on sale of prepaid Sim Card. However, there is no decision by the Hon’ble Jurisdictional High Cou...

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Section 194H TDS not Applicable on Commission to Credit Card Company

Global Healthline Pvt. Ltd Vs ITO (ITAT Delhi) - Global Healthline Pvt. Ltd Vs ITO (ITAT Delhi) The first issue relates to disallowance of sum of Rs.20,83,340/- on account of credit card commission under Section 40(a)(ia) of the Act. It is the case of the assessee that provisions of Section 194H are not attracted having regard to nature of such ex...

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No section 194H TDS on discounts on transfer of pre-paid SIM cards/talk time

Amit Kumar Shivhare Vs ITO (ITAT Raipur) - ITAT held that tax withholding provisions under section 194H would not be applicable to discounts extended to pre-paid SIM distributors on transfer of pre-paid SIM cards/talk time....

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TDS on payments for procuring or canvassing for advertisements

Circular No. 05/2016- Income Tax - (29/02/2016) - Law Related to Tax Deduction at Source (TDS) on payments by television channels and publishing houses to advertisement companies for procuring or canvassing for advertisements....

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Recent Posts in "section 194H"

SC ruling on Section 194H TDS on actual gross fare charged by travel agents

Singapore Airlines Ltd. Vs C.I.T (Supreme Court of India)

Singapore Airlines Ltd. Vs CIT (Supreme Court) Whether an airline is responsible for deducting tax at source in respect of supplementary commission which an agent is paid on the difference between the actual fare and the net fare- Section 194H of Income-tax Act, 1961 analyses including whether liability to deduct when the tax can be [&hel...

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Section 194H TDS not deductible on payment of credit card commission to banks

Indian Hotels Company Limited Vs ACIT (ITAT Mumbai)

ITAT Mumbai held that Commission to bank on payments received from customers who had made purchases through credit cards is not liable to TDS under section 194H of Act....

Read More

No TDS on discount on Sale of Prepaid SIM Card to Distributors

Dickson Electronics Vs ITO (ITAT Amritsar)

Dickson Electronics Vs ITO (ITAT Amritsar) It is seen, that the judicial view of the various High Courts is divergent regarding the deductibility or otherwise of tax on discount allowed to distributor on sale of prepaid Sim Card. However, there is no decision by the Hon’ble Jurisdictional High Court, either way. That being so, all [&hel...

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TDS Section 194H – Whether on Payment of Commission or on Discount Given? Open Issue for more than 15 years?

TDS Section 194H – Whether on Payment of Commission or on Discount Given? Open Issue for more than 15 years. Dear Friends and Professional Colleagues, recently have read one cases law on Income Tax TDS provision, after reading the case surprised to notice, there is no clarification on this matter for more than 15 years. […]...

Read More
Posted Under: Income Tax |

Section 194H – TDS on Brokerage or Commission

Section 194H contains guidelines about tax deductions on the amount paid as brokerage or commission. Entities making a payment as commission or brokerage to a resident have to make a tax deduction at a 5% rate. This amount has to exceed Rs. 15,000 in one financial year otherwise individual/HUF are not responsible to deduct TDS. However, ...

Read More
Posted Under: Income Tax |

Section 194H TDS not Applicable on Commission to Credit Card Company

Global Healthline Pvt. Ltd Vs ITO (ITAT Delhi)

Global Healthline Pvt. Ltd Vs ITO (ITAT Delhi) The first issue relates to disallowance of sum of Rs.20,83,340/- on account of credit card commission under Section 40(a)(ia) of the Act. It is the case of the assessee that provisions of Section 194H are not attracted having regard to nature of such expenses. It is contended […]...

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No section 194H TDS on discounts on transfer of pre-paid SIM cards/talk time

Amit Kumar Shivhare Vs ITO (ITAT Raipur)

ITAT held that tax withholding provisions under section 194H would not be applicable to discounts extended to pre-paid SIM distributors on transfer of pre-paid SIM cards/talk time....

Read More

TDS Rate Chart for FY 2022-23 / AY 2023-24 – Updated

Income Tax TDS Rate Chart for for Financial Year (FY) 2022-23 / Assessment Year (AY) 2023-24 The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. […]...

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Posted Under: Income Tax | ,

Difference in MRP & Sales price is not Commission to attract section 194H TDS

Wockhardt Limited Vs PCIT (ITAT Pune)

Difference between MRP & price sold to Stockists, by no stretch of imagination, can be considered as commission or brokerage paid by assessee to its Stockists to attract section 194H TDS....

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TDS on commission forming part of Salary deductible at the time of payment

PCIT Vs Indofil Industries Limited (Bombay High Court)

PCIT Vs Indofil Industries Limited (Bombay High Court) The issue herein is regarding disallowance under Section 40(a) (ia) of the said Act for amount of Rs.1,08,00,000/-. The Assessing Officer had noted that Respondent had made a provision for commission for the Chairman and the Managing Director (CMD) of the Company for Rs.1,08,00,000/- ...

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