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Tds on membership

TDS 755 views 4 replies

Our co. wish to become a member of networking co. According to them TDS will not be applicable on membership fee. Is that so? 

Replies (4)

TDS is not required to be deducted. 

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.

 

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.


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