Tds on royalty
Ravi Sharma (4 Points)
22 March 2017Ravi Sharma (4 Points)
22 March 2017
CA Anil Jain
(Chartered Accountant)
(105 Points)
Replied 22 March 2017
If the Payment is in the nature of Royalty, TDS needs to be deducted u/s 194J, if a single amount exceeds Rs. 30000/- or annual payment exceeds Rs. 100000/- otherwise if the payment is in nature of commission, TDS to be deducted u/s 194H. Whatever the case may be, TDS Rate will be 10% only. In no case, TDS can be deducted u/s 194C @ 2%.
Since, Section 194C states that any person responsible for paying any sum to resident contractor for carrying out any work.
The expression "work" in this section would include-
Thus you may have to deduct TDS @ 10% only and mostly the payments are in the nature of Royalty and so liable u/s 194J
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