TDS on Commission or Brokerage                          

Step 1

Company create

Bill-By-Bill =Yes

Inventory =No

TDS -Yes

Step 2

GOT >Create >TDS Nature of Payments

Name: Commission or Brokerage

Section: 194H

Code: 94 H

Control +I

Rate without PAN: 20%

Rate for Individuals /HUF (With PAN):5%

Threshold /exemption limit: 15,000 =00

(Above three rates and amount fill form PDF rate Chart file )

Step 3

Ledgers Create

1. Commission Paid A/c

Under: Expenses Indirect

TDS: Applicable

Nature: Commission & Brokerage

2. TDS on Commission A/c

Under: Duties &Taxes

Type of duty /Tax: TDS

Nature of Payment: Commission &Brokerage

3. Business Consultancy a/c

Under: Sundry Creditor a/c

Bill -By-Bill -Yes

Is TDS Deductible: Yes

Deductee Type: Company -Resident

Deduct TDS in Same Voucher: Yes

PAN No. : ASBBA125A

Step 3

Voucher Entry

Consultancy Taken from Business Consultancy A/c

F9 (All + I >Accounting Invoice)

Party Name: Business Consultancy A/c

Particular: Commission Paid A/c 120,000 =00

TDS on Commission A/c (-) 6000=00

(Note: F9 मैं entry करने का यह फायदा होगा कि हम यही पर  Control+O Tax Analysis Report, detailed  देख सकते हैं