TDS on Membership Subscription

This query is : Resolved

Rahul Singhal (Querist)
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16 October 2007 Dear Sir,

A company pays Membership Subsription to clubs and hotels for its Directors. The same is claimed as Revenue Expenditure.

Is TDS applicable under this??

CA. Rayan Sequeira

CA. Rayan Sequeira (Expert)
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16 October 2007 In this case TDS is not applicable. but here if the amt is regarded as a perk and included in the salary of the director and he is liable to tax on this then FBT need not be paid by the co otherewise the Co is liable for FBT

Rahul Singhal

Rahul Singhal (Querist)
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16 October 2007 The amount is not regarded as perk and is claimed as Business Expenditure.

I wish to clarify regarding applicability of Sec 194C/194J while making payment to such clubs/hotels.

Is there any circular/case we can refer to??