lakhan (article) (65 Points)
01 December 2011we have taken frenchise from a party who is dealing in food products. we have to make payment of Rs. 250000 as per frenchise agreement & also sharing revenues from this business. we are using recepies and some of the ingredients and services of cook provided by them.
can this be considered as royalty payment & TDS provisions applicable on that?
If it is not considered as royalty, is there TDS liabilities arises under any other section?
is there any case law available for the same case?
Bhavin Bhadra
(Job)
(174 Points)
Replied 01 December 2011
TDS is not required to be deducted on Recepies and ingredients...
TDS is to be deducted on services provided by cook under section 194C.
and if there is single bill for the same, TDS should be deducted on total amount.
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