TDS on Commission to director

[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.

AI Summary

Discussion on TDS Applicability for Director Commissions Under Section 194H/J: Should It Be Treated as Salary? A query was raised regarding the tax deduction at source (TDS) on commissions paid to directors for container movement. In the industry, it is common for directors, employees, or third parties involved in container movement to receive commissions or rebates based on volume. The individual inquiring believes that commissions paid to directors, even those receiving monthly remuneration, should be subject to TDS under Section 194H/J and not treated as salary. They seek expert opinions on this interpretation.