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Tds on revenue sharing

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This query is : Resolved

Amitkumar Verma (Querist)

08 April 2016 Sir/Madam, I am working with BSNL as an A.O. BSNL has agreement with a person, in which, that person arrange new FTTH Connection for BSNL, afterwords, BSNL makes bills for that subscribers as these are called subscribers of BSNL. BSNL shares 20% of revenue with that person. i would like to know that whether 10% TDS is to be deducted from payment made to that person or 1% TDS. whether it comes to definition of Commission or Contract. Please guide. Thanks & Regards

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 April 2016 It will be covered as commission u/s.194H. As per sec.194H the commission referes

"commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities

So tds applies u/s.194H

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