Deduction of tax at source
This query is : Open
MANAN H. KARVAT
(Querist)
03 February 2012
A LTD, A HEALTHCARE SERVICE PRIVIDER, HAS OBTAINED A SPECIALISED MACHINE FROM B. LTD. FOR PROVIDING THE TREATMENT TO PATIENTS.
THE AGREEMENT BETWEEN A. LTD. & B. LTD. STATES THAT THE FEES RECEIVED FROM PATIENTS WILL BE SHARED IN A SPECIFIC RATIO. I CASE THERE ARE NO PATIENTS FOR A PARTICULAR MONTH, THEN THERE WOULD NOT BE ANY PAYMENT TO B. LTD.
IS A. LTD. LIABLE TO DEDUCT TAX AT SOURCE AGAINST PAYMENTS MADE TO B. LTD.?
UNDER WHAT SECTION?
THE AGREEMENT BETWEEN A. LTD. & B. LTD. STATES THAT THE FEES RECEIVED FROM PATIENTS WILL BE SHARED IN A SPECIFIC RATIO. I CASE THERE ARE NO PATIENTS FOR A PARTICULAR MONTH, THEN THERE WOULD NOT BE ANY PAYMENT TO B. LTD.
IS A. LTD. LIABLE TO DEDUCT TAX AT SOURCE AGAINST PAYMENTS MADE TO B. LTD.?
UNDER WHAT SECTION?
CA PARAS BAFNA
(Expert)
04 February 2012
"OBTAINED" GOT VARIED MEANINGS. PL CLARIFY.
MANAN H. KARVAT
(Querist)
04 February 2012
A. LTD. HAS OBTAINED THE MACHINE FOR USE UNDER AN AGREEMENT WITH B LTD.
A. LTD. & B.LTD. WILL SHRE THE REVENUE GENERATED OUT OF THE USE OF MACHINE.
A. LTD. & B.LTD. WILL SHRE THE REVENUE GENERATED OUT OF THE USE OF MACHINE.
CA PARAS BAFNA
(Expert)
04 February 2012
THE ESSENCE OF AGREEMENT IS SHARING THE REVENUE AND AS SUCH IT FALLS SOMEWHAT AWAY FROM THE AMBIT OF RENTAL CHARGES.
.
BUT HIRE CHARGES ARE BASED ON THE USE OF MACHINE. MORE THE MACHINE WILL BE USED, MORE THE HIRE CHARGES WILL BE RECEIVED IN THE FORM OF SHARING IN REVENUE. HENCE TDS CAN BE DEDUCTED U/S 194I.
.
.
BUT HIRE CHARGES ARE BASED ON THE USE OF MACHINE. MORE THE MACHINE WILL BE USED, MORE THE HIRE CHARGES WILL BE RECEIVED IN THE FORM OF SHARING IN REVENUE. HENCE TDS CAN BE DEDUCTED U/S 194I.
.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Query on effect of registration of property
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
