Tax treatment of profit sharing in part of a proprietary business

A proprietary business receives some amounts from few friends for bidding some contract and the business receives the contract. As per arrangement among them (as per agreement) the profits from this contract/work will be shared in certain ratio.

After the completion of project, the business returns the original sum received from them alongwith the profit share.

Query -

1) is TDS deductible on payment of profit share? if yes, under which section.

2) How it will be accounted for in the books of the proprietary business?

Thanks in advance.