Tax consultancy query
This query is : Resolved
shubham agrahari
(Querist)
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
(Expert)
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 .
.
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 .
CA BHARATH KUMAR
(Expert)
18 November 2013
i agree with paras sir
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