Tds on administrartion and management charges

1) If there is a contract between you and the nursing home and the aggregate sum of receipts exceeds Rs. 75000 during the year, then the Nursing Home is liable to deduct TDS u/s 194C.

2) If the deductee is Individual / HUF then TDS is to be deducted @ 1%, whereas if the deductee is Pvt. Ltd. / Partnership Firm, then TDS to be deducted @ 2%.

3) It should also be kept in mind, that if the gross receipts of the Nursing Home do not cross the prescribed limit (ie. Rs. 1 Crore - for A.Y 13-14), then th provisions of TDS shall not be applicable.

Regards,

Devendra Kulkarni

Dear Tanuj

I don't agree with Devendra

it is management fee so it is not u/s 194 C

it is technical fee and 194 J will be applicable

TDS will be 10%.