Tds On Franchises Agreement
This query is : Resolved
27 August 2021
Dear Sir
Whether Any Tds Becomes Applicable For payment To Me Made To Franchisee For Selling Our Product .
All Payment Will Be Collected By Us And Then Remitted To Franchisee As per Revenue Sharing Agreements Based On % Of Revenue Generated By Him .
All Day to Day Expenses For This Agreements Will be Borne By Franchisee Only Except Advertisement cost .
Advertisement cost Will Be Borne By Us For Our Product .
Please Advice For The Same .
Whether Any Tds Becomes Applicable For payment To Me Made To Franchisee For Selling Our Product .
All Payment Will Be Collected By Us And Then Remitted To Franchisee As per Revenue Sharing Agreements Based On % Of Revenue Generated By Him .
All Day to Day Expenses For This Agreements Will be Borne By Franchisee Only Except Advertisement cost .
Advertisement cost Will Be Borne By Us For Our Product .
Please Advice For The Same .
23 September 2021
Generally, in Franchise model, there exists principal-agent relationship and hence TDS under section 194H would be attracted. However, one will need to go through the Agreement to determine whether there is principal-agent relationship or not.
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