Tds on club mahindra membership & annual subscription fees

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Hilmesh Gandhi (Querist)
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15 April 2014 Dear Sir,

Our company has a club Mahindra membership since 6 years. Recently our director upgraded the season of the membership from Red to Purple. The upgrade cost was INR 1,00,599/- of which INR 10371 was paid by credit card as down payment and the rest amount as EMI (INR 7519) for 12 Months from the credit card. This amount the company is reimbursing him on a monthly basis in parallel to the deductions in his credit card.

Does this payment attract TDS??? If yes please help me with the relevant sections and if NO then also please advise as to why it does not.

Furthermore in Club Mahindra there is an Annual Subscription fees which can range from 9000 to 20,000. Does this fees attract TDS?

Looking forward to your advise & suggestions.

Rupesh Jain

Rupesh Jain (Expert)
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15 April 2014 you can deduct the tds u/s 194C

@ 2%

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Hilmesh Gandhi

Hilmesh Gandhi (Querist)
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15 April 2014 Dear Sir,

2% shall be deducted from the total amount of INR 1,00,599/-. Correct? Since the amount is being directly debited from Credit card there is no way i can claim the TDS from Club Mahindra. Hence it means that this TDS is to be borne by the company?

Does this 2% apply on the Annual Subscription fees?

Thanks

Rupesh Jain

Rupesh Jain (Expert)
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15 April 2014 you can talk with club then they tell you procedure of refund of tds it may possible they have exemption certificate or lower deduction certificate.

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