Calculate sales agent or channel partner commission on any sale. Built for FMCG distributor and retailer networks, with the TDS note.
Commission is the cut a sales agent or channel partner earns on a sale โ a straight percentage of the sale value. It's how most FMCG distributor and retailer networks reward the people bringing in orders.
Remember the tax angle: commission paid to an agent attracts TDS at 2% under Section 194H once it crosses โน20,000 in a year. Budgeting the gross commission without the deduction leads to reconciliation headaches later.
A โน1,00,000 sale at 5% commission: โน5,000 to the agent, โน95,000 net to the company. TDS at 2% (โน100) is deducted from the agent's commission and deposited against their PAN.
Yes โ Section 194H requires 2% TDS on commission or brokerage above โน20,000 a year. Collect the agent's PAN before the first payment, or the rate jumps to 20%.
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