Deduction of tax at source

This query is : Open

MANAN H. KARVAT (Querist)
Follow

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?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 February 2012 "OBTAINED" GOT VARIED MEANINGS. PL CLARIFY.

MANAN H. KARVAT

MANAN H. KARVAT (Querist)
Follow

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.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

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.
.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok