Tax consultancy query

This query is : Resolved

shubham agrahari (Querist)
Follow

16 November 2013 sir plz help me in this problem. . . an assess X is engaged in health care and running a hospital has TRANSFERRED its patient base to assess Y. and for there is a clause in agreement that the assese X will not carried out this health care business during the period of agreement. In consideration X has received rupees 100000 frm Y . SO MY QUESTION IS . .- 1. is there any provision of tds applicability on Y while making payment to X. 2. what is nature of receipt in the books of X and whether is it a capital receipt or revenue receipt. 3. what would be the treatment in the books of Y and weather is it a capital expense as goodwill or revenue expense. SIR PLZ HELP ME IN THIS QUERY.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

16 November 2013 In my view during the period of agreement X has been restricted to carry on his business so the amount being received by him his covered U/s 28(va)(a) as his PGBP income.
.
The income is generated from a profession -so is liable to TDS. Y has to deduct TDS accordingly U/s 194J.
.
The nature of transaction will be of revenue .