TDS on Commission to director, Income Tax

[Rahul Dwivedi]

Actually the practice follow in the industry is that any person whether director, employee or any other third person (i.e. shipping line, CHA etc.) who moves the container for the company (in CFS) gets commission/rebate. The rate of rebate is depends on Volume.

We are paying monthly remuneration to directors but as trade practice, for movement of containers director get commission.

My personal view is that any person (director or Third party ) gets commission for container movement so TDS EVEN CASE OF COMMISSION TO EXECUTIVE DIRECTOR should be deducted U/s 194H/J & should not be treated as salary.

Require your expert opinion on the same.