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TDS on Commission paid to collection agency

This query is : Resolved 

05 May 2010 A mobile Co. has entered into a contract with an agency for collection of its bill amount. The payment made to these agency is based on percent of amount collected by these agencies.

Now under which section the TDS should be deducted keeping in mind that mobile co is bearing the risk?

05 May 2010 since it is contract entered tds deductible u/s 194C

05 May 2010 In case of LIC Agents who solcit "business" for the LIC, is there any scope to take similar stand of Contract existing between LIC and Agents so as to affect TDS u/s 194-C

05 May 2010 Agree on first point with Aditya, on second question - No Specifically the provisions are covered under section 194 H, Commission.


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