Tds

Generally any commission paid for the promotion of sales will be covered under 194H. Does 194H cover services also? i.e if an agent is gathering clients for lawyers then amount paid by lawyer to agent subject to T.D.S u/s 194H or 194C? and a private medical practioner(R.M.P) refer to a doctor and if such doctor is paying some referal charges to R.M.P doctor,does they cover under 194H or 194J? Awaiting an early reply.

Replies (3)

Since there is no contract or any agreement/arrangement between the agent and the principal and the agent is not bound to provide the service as and when needed , the same cannot be considered as a contract and thus no TDS is required under Section 194C but required under Sec 194H.  

I agree with mr. anant

 

referral charges paid by doctor are disallowed under IT act..refer case law on this issue...

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