Provision to deduct TDS on Royalty
This query is : Resolved
08 March 2009
Sir,
I have a request for clarification. If a proprietor whose turnover/gross receipt is below 40 lacs. He is running a computer institute (Franchisee). He is paying aroung 1.5lacs yearly to the Franchiser as a Royalty. whether he has to deduct TDS on the payment? ITO insisting him to deduct TDS.when I searched many books I couldnt find this provision. I want an urgent clarification. since his account is not to be audited u/s44AB he is not liable to TDS..Am I right? kindly clarfiy.
I have a request for clarification. If a proprietor whose turnover/gross receipt is below 40 lacs. He is running a computer institute (Franchisee). He is paying aroung 1.5lacs yearly to the Franchiser as a Royalty. whether he has to deduct TDS on the payment? ITO insisting him to deduct TDS.when I searched many books I couldnt find this provision. I want an urgent clarification. since his account is not to be audited u/s44AB he is not liable to TDS..Am I right? kindly clarfiy.
CA.Tarun Maheshwari
(Expert)
08 March 2009
Yes, you are right. If a person is not covered in Tax Audit, he is not liable to deduct TDS.
09 March 2009
Thank u for ur reply... and solved my problem...thanks a lot....
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