Tds on non refundable life time membership

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This query is : Resolved

Harsh Soni (Querist)

28 March 2015 My company (Public Limited) paid Rs. 1.10 Lacs + service tax to Waste Disposal Company towards Non refundable Life Time membership fess against utilisation of Waste Disposal Service service. Is TDS applicable? If applicable, under which section. And if not applicable, request to provide supporting case law or judgement or provision of tax law.

My view is that TDS is applicable under section 194C.

Thanks in advance.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 March 2015 Yes. TDS applicable since the payment against service only, what ever the name called. sec.194C will apply

Harsh Soni

Harsh Soni (Querist)

28 March 2015 Thanks Mr. Krishnan.

Just want further clarification. Can't we consider this as a subscription and not deduct TDS?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

28 March 2015 Basically it is contractual payment to avail waste disposal service. Also not for any other non commercial activity, so whether it is life time membership/monthly subscription/ service based payment what ever name called TDS will apply u/s.194C. incase if this service in the nature of technical/ professional then sec.194J will apply. but as per surely TDS will apply. since not technical sec.194C apply

if it is refundable then TDS application wont be there

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