Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: VAT Audit :: form 3cd :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company
 
 
News Headlines »
 How to link your Aadhaar and PAN details to file income-tax returns
 How to calculate capital gains tax on property sold at less than stamp value?
 Return Filing - Under GST, this is how you will file tax returns from July 1
 Income tax filing FAQs part 1
 Filing Income Tax Returns? Things To Keep In Mind As Deadline Approaches
 Filing of online return for 4th quarter of 2016-17- extension of period thereof.
 New tax accounting standards may reduce leeway for infrastructure companies
 GST – CONCEPT & STATUS – As on 01st May, 2017
 Govt extends VAT deadline, relief for developers
 Income Tax Appellate Tribunal Rules, 2017
 Got your Form 16? You should file income tax returns early to enjoy benefits

Goods dealers need not pay TDS on discounts
July, 21st 2006

This should come as a relief to the dealers of consumer goods across the country. Manufacturers offering discounts to their dealers need not cut TDS (tax deducted at source) on them. Instead, TDS would only apply on the commission paid by the company to dealers.

Income tax department sources said they would issue a clarification soon to clear the air on the issue. Due to the absence of this distinction, there has been an overlap about the treatment of commission and discounts by the field forces.

For example, if a TV manufacturer gave a discount, besides the commission to his dealer for surpassing sales targets, there was lack of clarity on whether such discounts would be treated as the dealers profit or as part of his commission.

There have been cases where discounts were treated as part of the commission and field forces were asked by companies to cut TDS. Incidentally, there have been such recent cases at the Income Tax Tribunal involving a foreign footwear manufacturer and a telecom company.

The issue was also highlighted at the recent annual conference of the Chief Commissioners and Director Generals of Income Tax. The issue is whether there should be TDS on discounts distributed to dealers by companies. So far, tax authorities had claimed that commissions were being overstated to cover discounts, and so they had been insisting on TDS compliance. This issue has been subject to litigation between the tax payer and the department. Any clarification on this would be a welcome move, says KPMG director Salil Gupta.

According to PricewaterhouseCoopers executive director Rahul Garg, While the law is very clear on the definition of what constitutes discount and commission, there have been cases where TDS was being demanded on discounts as well. If the department comes out with clear-cut guidelines on this, in line with judicial precedence, it would be welcome.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions