Tds on franchise

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Abhishek Shukla (Querist)
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05 January 2017 Dear Sir,

We have a franchise of a Commercial Education institute & have to pay franchise fee once in five year , so plz let me the % of TDS and in which IT head it will deposit.

Mithun Agarwal

Mithun Agarwal (Expert)
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05 January 2017 you will deduct under section 194C. If, dedcutee is Individual or Huf then will deduct 1%. If, deductee is firm or company or trust then will deduct 2%.

Abhishek Shukla

Abhishek Shukla (Querist)
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05 January 2017 Sir, Actually i am paying franchisee fee for a new centre not for renewal & our CA is suggesting me for 10% under 194J. So plz suggest ..

Mithun Agarwal

Mithun Agarwal (Expert)
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05 January 2017 Then you should proceeds with your CA. your CA is Correct & you will deduct under 194J @ 10%.

Abhishek Shukla

Abhishek Shukla (Querist)
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05 January 2017 Sir, here i am asking correct name of IT section where i can deposit with description. i don't know my CA is correct or not. but if you don't want to revert properly then it's okay sir .

Abhishek Shukla

Abhishek Shukla (Querist)
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05 January 2017 We are opening commercial coaching training institute..

Mithun Agarwal

Mithun Agarwal (Expert)
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05 January 2017 Section 194J-TDS on Professional Fee or Technical Services or Royalty or Non-compete fee.
Non compete fee : any sum received or receivable in cash or kind under an agreement for not sharing any know-how, patent, copyright, trademark, license, franchise or commercial rights of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services.
for more information u can see the given link https://yourfinancebook.com/section-194j-fees-for-professional/
I hope you are satified.

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