Query on tax deduction at source

Dear Experts

Does membership fee payable to FAI - Fertiliser Association of India attract tax deduction at source ? If yes under section 194C or 194J.

Regards,

Replies (3)
Quick Summary
This discussion explores whether Tax Deduction at Source (TDS) applies to membership fees paid to the Fertiliser Association of India (FAI). While one expert suggests TDS is not applicable, another advises it falls under Section 194J at a 10% rate, recommending confirmation with the payee. The rationale behind confirming with the payee is debated, with the consensus being that the payer is responsible for determining TDS applicability.

TDS is not applicable in case of membership fees paid. No need to deduct TDS.

Tds is applicable under section 194J at the rate 10% .

You may contact the payee and confirm before deducting the tds

Sir

What is the rationale for contacting the payee. The payee cannot state / dictate provisions of law. The payer should decide if to deduct or not. Otherwise the payer will be at default, not payee.

Regards

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