CA Inter Income Tax and GST MCQ Book

TDS rate on Commission – Section 194H

Applicability and Rate of TDS u/s 194H :

 Any person not being an individual/ HUF;

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 at the time of credit of such income to the account of the payee or

at the time of payment of such income in cash/ cheque/ draft/ any other mode,

whichever is earlier, deduct income-tax thereon at the rate of 5%.

Monetary Limits :

TDS rate on  commission or brokerage shall be Nil,  where the amount of commission or brokerage   credited/ paid (or likely to be credited/ paid) during the FY, to the payee, does not exceed Rs. 15,000.

Non-applicability of TDS u/s 194H :

1. An individual/ HUF,  unless they were liable for tax audit during the FY immediately preceding the FY in which such commission/ brokerage is credited/ paid.
2. No deduction shall be made under this section on any commission/ brokerage payable by BSNL/ MTNL to their public call office franchisees.

Meaning of “Commission or Brokerage” :

1. “Commission or Brokerage” includes any payment received/ receivable (directly or indirectly) by a person acting on behalf of another person –

• for services rendered (not being professional services); or
• for any services in the course of buying / selling of goods; or
• in relation to any transaction relating to any asset/ valuable article/ thing, not being securities.

2. “Professional services” means services rendered by a person in the course of carrying on a legal, medical engineering or architectural profession the profession of accountancy or technical consultancy or interior decoration or such other profession as notified for the purposes of section 44AA
3. Brokerage in respect of transaction in securities is specifically excluded from purview of section 194H – [SHCIL Services Ltd. v. CIT]
4. Payment to banks for utilization of credit card facilities are in nature of bank charges, and not commission, and therefore, no tax is deductible at source u/s 194H – [Tata Teleservices Ltd. v. CIT, ITO v. Jet Airways (India) Ltd].
5. No surcharge, health and education cess shall be apply on tax deducted at source u/s 194H during the FY 2018-19.
6. If the recipient does not furnish his PAN to the deductor, tax will be deducted at the rate of 20%.

Arinjay Academy, is providing Hindi Vyakaran Notes and Video Explanation for class 6 to 10 Students.

We provide various notes , relevant to Student of Class 6 to 10, who may be studying in CBSE Board, ISC or State board.

Hindi Vyakaran Notes and Video Explanation are in an interesting and easy-to-understand manner. Keeping in mind about the mental level of students of class 6 to 10, every effort has been made to clear every concept in a simple or easy language.

We hope that these notes will help in your studies and clear all your doubts.

Hindi Vyakaran (Class 6)

The syllabus of Class 6 comprises of the following chapters. We have prepared various notes relevant for the student of Class 6, who may be studying in CBSE, ISC or State board. Each of these notes have been given under the particular chapter, which you can click and read : –

Hindi Vyakaran (Class 7)

The syllabus of Class 7 comprises of the following chapters. We have prepared various notes relevant for the student of Class 7, who may be studying in CBSE, ISC or State board. Each of these notes have been given under the particular chapter, which you can click and read : –

Hindi Vyakaran (Class 8)

The syllabus of Class 8 comprises of the following chapters. We have prepared various notes relevant for the student of Class 8, who may be studying in CBSE, ISC or State board. Each of these notes have been given under the particular chapter, which you can click and read : –

Hindi Vyakaran (Class 9 and Class 10)

The syllabus of class 9th and Class 10th comprises of the following chapters. We have prepared various notes relevant for the student of Class 9th and Class 10th, who may be studying in CBSE, ISC or State board. Each of these notes have been given under the particular chapter, which you can click and read : –

Dalton’s atomic theory

According to Dalton’s atomic theory:-

Laws of Chemical Combination

There are two laws of Chemical Combination which we are studying in class 9.
1. Law of conservation of mass
2. Law of constant proportion

[Read more…] about Laws of Chemical Combination

The provisions of Section 194J, are reproduced as under : –  

194J. 

(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a)       fees for professional services, or

(b)       fees for technical services,  (or)

(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or]

[Read more…] about Section 194J – Fees for professional or technical services

Classification of Ratios

Accounting Ratios Class 12 covers ratios, which are covered in the syllabus of Class 12, although the concept are broadly applicable to any situation requiring analysis of Accounting Ratios. They are used to analyse the financial position of the firm and are  categorised into following types of ratios : –

1. Balance Sheet Ratios
2. Statement of Profit & Loss Ratios
3. Composite Ratios

[Read more…] about Accounting Ratios Class 12