Our co. wish to become a member of networking co. According to them TDS will not be applicable on membership fee. Is that so?
Alok Bansal (Consultant) (52 Points)
06 May 2013Our co. wish to become a member of networking co. According to them TDS will not be applicable on membership fee. Is that so?
Alok Bansal
(Consultant)
(52 Points)
Replied 06 May 2013
I didnt understand why not since they are providing professional help to the companies/ Individual to enhance their marketing indirectly and therefore they must fall under
|
194 J |
Professional / technical services, royalty |
More than Rs. 30000/- |
10% |
10% |
Anybody can found that they are providing a kind of professional & well managed marketing services.
CA.Vinita Gupta
(Deputy Manager- Finance)
(2918 Points)
Replied 09 May 2013
if its a membership fees tds is not required to be deducted because there is no Professional Services rendered
Membership fees is allowed as an expenditure under income tax act as it has nexus with the business or profession.
But in abscense of any speicfic provisions, no liability of deduction of tax arise on it.
Becoming a member of the networking company doesn't mean taking professional service of the company.
CAclubindia
