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

TDS deduction: franchisee can apply for a lower/no deduction certificate or argue margins are discounts, not commission.
Franchisees selling recharge cards can seek a TDS certificate for lower or no deduction and present it to their supplier to reduce withholding; alternatively, they may argue their retail margins are discounts, not commission, so withholding would not apply. Because courts have reached differing conclusions and tax rules can disallow expenses if withholding is not made, the position remains unsettled and taxpayers should adopt conservative compliance or obtain formal relief.