Applicability on TDS on revenue share

This query is : Resolved

SHYAM KRISHNAN K (Querist)
Follow

18 June 2022 I am running a medical lab. For the expansion purpose, i have jointly operate medical lab with some other parties who are dealing pharma business(medical store) on r revenue share basis. Medical store provide some area of their building to us and we collect swab from there. As per our agreement we are liable to 20% of gross revenue to party. In this scenario, what section of TDS applicable.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

18 June 2022 194 I TDS on rent for using the premises applicable.

Message likes : 1 times

CA Puja Sharma

CA Puja Sharma (Expert)
Follow

18 June 2022 Whether the 20% share in the form of commission? It will depend upon the terms mentioned in the agreement.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
Follow

19 June 2022 Is the income generated in this way covered under GST. If covered what is the rate of GST

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 June 2022 Yes, it's covered under GST 18% applicable.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
Follow

20 June 2022 We have collect the amount as based on an revenue share agreement/contract. Is it covered u/s 194 I. Can we collect TDS u/s 194 C as based on this agreement.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 June 2022 Yes you can do it......

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now