TDS DEDUCTION

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..... TDS DEDUCTION
Query (Issue) Started By: - ricky chopra Dated:- 27-12-2011 Last Reply Date:- 29-12-2011 Income Tax
Got 2 Replies
Income Tax
SIR, MY SELF BSNL FRANCHISEE & SELLING RECHARGE,EASY RECHARGE & SIM CARDS TO MY MORE THAN 1500 RETAILERS DAILY ON CASH OR THROUGH BANK. SIR WE ARE PAYING TDS TO BSNL ON EACH & EVERY PURCHASE. & WE ARE SELLING WITHOUT DEDUCTING TDS FROM RETAILERS .....

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..... BECAUSE THEIR COMMISSION IS VERY LOW & ALSO NUMBER OF RETAILERS IS MORE, & MOREEVER WE PURCHASING FROM BSNL & DIRECTLY SELLING ON BEHALF OF BSNL & OUR PROFIT IS ONLY 0.5 % FOR WHICH WE ARE GIVING INCOME TAX. NOW IT DEPTT.TAKING WHOLE COMMISSION RECIEVED BY US FROM BSNL IN OUR ACCOUNT & SAYING TO DEPOSIT THE TDS FOR EACH PARTY. SO KINDLY HELP US BY GIVING SOME SOLUTION.WAITING FOR AN EARLY REPLY T .....

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..... HANKS Reply By pawan tiwari: The Reply: You can avail the benifit of section 197 of income tax. According to this section, first you have to apply for less deduction of TDS or no deducton of TDS ( i.e. NOC) to AO . after getting certificate you produce it to BSNL and take benifit. Thanks CA. Pawan Tiwari. Reply By DEV KUMAR KOTHARI: The Reply: On consideration of correct nature, there is n .....

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..... o commission but there is difference in buying and selling rate or different disocunts. BSNL is selling to you cards at whole sale price. Price charged by BSNL to its different dealers is also not uniform but is differential due to varying discounts allowed. However, unfortuantely the matter was not argued properly, therefore some courts have held that the differnece is commission. Similarly you .....

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..... are selling to your sub-dealers cards. I hope you also follow differential pricing in relation to various sub-dealers, and again sub-delaers also sell cards at differential price ( by offering discounts at different rates). Therefore, on correct interpratation and cosnideration of true nature of difference being discount, there should not be TDS. The matter is not yet final. IMportance of TDS i .....

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..... s now more due to provisions of disallowance of entire expenses, if tax is not deducted or deposited. Therefore, one should play safe.
Discussion Forum - Knowledge Sharing .....

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