What is Consequences of not deducting TDS on commission (Section 194H)?
Nexa Consultancy | Startup & Finance Glossary
Failing to deduct TDS on commission or brokerage payments exceeding ₹15,000 in a year can lead to disallowance of 30% of the expense for tax purposes, plus interest and penalties.
Startup Example: A D2C startup pays ₹1 Lakh in commission to a sales agent but fails to deduct TDS at 5%. This can lead to a disallowance of ₹30,000 as an expense.
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