Tds applicability on commission, Income Tax

[anil kalia]

A partnership firm is paying commission to its partners. The payment of commission is duly authorised by the partnership deed and is allowable u/s 40(b) of the Income Tax Act, 1961. Pl advice whether the firm is liable to deduct TDS U/s 194H on commission paid to partners.

Posts / Replies

[CA GOPAL JI AGRAWAL]

Dear Anil Ji, In my view, The commission would also be called as remuneration as per section 40(b) so is not subject to TDS due to lack of employer-employee relationship.

[CA Sachin Agarwal]

Dear Anil, TDS will not be applicable on the payment made to Partners. please write email for more clarification [email protected]