Tds on royalty

863 views 2 replies
Hi My Company is dealing in franchisee Business and just started and i have a confusion of TDS amount deduction is it 2% or 10%
Replies (2)

If the Payment is in the nature of Royalty, TDS needs to be deducted u/s 194J, if a single amount exceeds Rs. 30000/- or annual payment exceeds Rs. 100000/- otherwise if the payment is in nature of commission, TDS to be deducted u/s 194H. Whatever the case may be, TDS Rate will be 10% only. In no case, TDS can be deducted u/s 194C @ 2%. 

Since, Section 194C states that any person responsible for paying any sum to resident contractor for carrying out any work.

The expression "work" in this section would include-

  1. advertising;
  2. broadcasting and telecasting including production of programs for such broadcasting or telecasting;
  3. carriage of goods and passengers by any mode of transportation, other than railways;
  4. catering;
  5. Manufacturing or supplying of a product according to the requirement or specification of a customer by using the materials purchased from such customer, But does not include manufacturing or supplying of a product according to the requirements or specifications of a customer by using the materials purchased from a person, other than such a customer.

 

Thus you may have to deduct TDS @ 10% only and mostly the payments are in the nature of Royalty and so liable u/s 194J

Thanku Sir 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details