Hi,
I look after the administration and management of a nursing home. i look after the stock keeping of medicine, staff duty etc. The Nursing home pays me 25000 per month as management fees. i am not their employee and they do not give me any salary.
Should the nursing home deduct any TDS if yes at what percentage.?
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%.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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