TDS DEDUCTION

[ricky chopra]

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 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

THANKS

AI Summary

BSNL Franchisee Challenges TDS on Commissions; Consider Applying for Relief Under Section 197 to Avoid Disallowance. A BSNL franchisee expressed concerns about TDS deductions, as they pay TDS on purchases from BSNL but do not deduct TDS from their retailers due to low commission margins. The Income Tax Department is demanding TDS on their entire commission. A respondent suggested applying for less or no TDS deduction under Section 197 of the Income Tax Act. Another respondent argued that the financial difference is not commission but a discount, which should not attract TDS. They emphasized the importance of complying with TDS provisions to avoid disallowance of expenses.