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Tds applicable or not?

manish agrawal (Article) (47 Points)

12 August 2014

Respected Members of CCI

I have a quary , you are requested to guide me. I got a client who has taken francies/agency of Jaipur National University, He collects fees from students and remitt the share of JNU. JNU provides him question papers and supplemantary of the students who has taken admission in various couses. and finally JNU issues certificate to those students who are eligible. My queary is that supose my client employe an emplyee,and paid salary above 2 lakhs, is it mandary for him to deduct TDS and other thing is what is the implication of Service Tax, is it applicable, if yes how and when.

Plesae reply me. waiting for you valuable suggestion.

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4 Replies

R.Suresh (Sr. Executive) (394 Points)
Replied 12 August 2014

Hi Manish, 1. Could you please explain more about the service, than I can able to answer. Generally person providing any service to the people, Service Tax will applicable (But some condition apply). 2. An employer and employee concept first you need to determine the notional income of employee than based on that employer need to calculate the tax and deduct the tax from employee's salary month on month dividing in to number of months.

manish agrawal (Article) (47 Points)
Replied 12 August 2014

Sureshbhai Thanks for your suggestion, but still i m confused. The service provided by my client is intermediatery service.

Madav (Senior Consultant) (172 Points)
Replied 12 August 2014

Can you please tell us, what kind of remenuration has been agreed in the contract between JNU and your client. I mean your client is considering retained income as Commission ? We need to determine who is providing service to whom?

manish agrawal (Article) (47 Points)
Replied 12 August 2014

Dear Members

My client is providing service like information centre. If any student want to go for any courses/programme say for BCA, MBA etc from JNU. They can collect infomration from our clients premise. paid the fees to my client. later on my client remit the share of JNU (50 to 70% depend on course/progame). and the role of my client is to provide infomation, arranging exams (quision paper and supplermnatry ) sent by JNU. and finally send the written supplementary to JNU. than JNU check it and declare result. I hope the matter is clear n ow.