watch_later 14/10/17

Please advise.

A hotel gets bookings from portals like MMT & Goibibo for which they charge commission.

The portals collect payment from the guests and after deducting their commission remit the balance to the hotel.

Earlier the hotel was raising bills on the amount actually received by it as accounting for the gross amount and then showing commission paid to the portals would raise questions of TDS on commission which the hotel does'nt actually pay.

Now, under GST the hotel has to raise bills on gross amount and show commission paid in their accounts so as to take input credit of the commission which is reflecting in GSTR 2A.

My question is what about the TDS to be deducted on the commission paid considering it is crossing the limit of 15000/-?


Is there any other way ?

1 Response | Latest response: 19/06/18 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 19/06/18

As per section 194 H of I.T Act 1961 it is mandatory to deduct the TDS on commission if annual value of commission exceed Rs 15000/-, So it is clear that TDS shall be deduct for certain cases.

My opinion is that mmt should transfer full amount to hotel which received from customer and hotel should pay commission after deducting the tds to the agent as seprate transaction.


Kishore Jpotra 


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