Applicable-tds -section on payment of license fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2014 Dear All

Mr.A is paying Rs 30,000/pm for getting Liquor License fee from Mr.B. Both r the individuals. And Mr.A sales are more than the Rs 1 crore, then under which section Tds has to be deducted.

Please help me with regarding to this

Thank you
Amar

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 September 2014 TDS should be deducted u/s 194J @10%.

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2014 Thank you sanjay,

As per sec-194J(ba),
any remuneration or fees or commission by whatever name called, Hence any fee has been included as per 194J, Licence fee paid for taking others' Licencee is also sec-194J is applicable.

But we are paying amount for taking the Licence, so it is like rental fee for taking possession of Licence hence, sec-194I is applicable.

please clarify the above.

Thank you
Amar

Rupesh Jain

Rupesh Jain (Expert)
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10 September 2014 u/s 194 I for retn of building and machinery . not for as you ask.

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2014 Than you Rupesh,

So Sec 194J is applicable right?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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10 September 2014 Yes . Section 194I not applicable. Payment made by you is in the nature of royalty/fees and therefore section 194J will apply.

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