63[Commission or brokerage64.
194H. Any person, not being
an individual or a Hindu undivided family, who is responsible for paying, on or
after the 1st day of June, 2001, to a resident, any income by way of commission
(not being insurance commission referred to in section
194D) or brokerage, shall, at the time of credit of such income to the
account of the payee or at the time of payment of such income in cash or by the
issue of a cheque or draft or by any other mode, whichever is earlier, deduct
income-tax thereon at the rate of 65[ten] per cent :
Provided that no deduction shall be made under this
section in a case where the amount of such income or, as the case may be, the
aggregate of the amounts of such income credited or paid or likely to be
credited or paid during the financial year to the account of, or to, the payee,
does not exceed 65a[five thousand
rupees] :
66[Provided further that an individual or a Hindu undivided family,
whose total sales, gross receipts or turnover from the business or profession
carried on by him exceed the monetary limits specified under clause (a)
or clause (b) of section 44AB during the
financial year immediately preceding the financial year in which such
commission or brokerage is credited or paid, shall be liable to deduct
income-tax under this section:]
67[Provided also that no deduction shall be made under this section
on any commission or brokerage payable by Bharat Sanchar Nigam Limited or
Mahanagar Telephone Nigam Limited to their public call office franchisees.]
Explanation.—For the purposes of this section,—
(i) “commission or brokerage” includes any
payment received or receivable, directly or indirectly, by a person acting on
behalf of another person for services rendered (not being professional
services) or for any services in the course of buying or selling of goods or in
relation to any transaction relating to any asset, valuable article or thing,
not being securities;
(ii) the expression “professional services” means
services rendered by a person in the course of carrying on a legal, medical,
engineering or architectural profession or the profession of accountancy or
technical consultancy or interior decoration or such other profession as is
notified by the Board for the purposes of section
44AA;
(iii) the expression “securities” shall have the
meaning assigned to it in clause (h) of section 2 of the Securities
Contracts (Regulation) Act, 1956 (42 of 1956)68 ;
(iv) where any income is credited to any account,
whether called “Suspense account” or by any other name, in the books of account
of the person liable to pay such income, such crediting shall be deemed to be
credit of such income to the account of the payee and the provisions of this
section shall apply accordingly.]