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TDS on royalty to Indian company

10 May 2007

Is TDS applicable on royalty payment made by an INdian company to another Indian company? If yes, under which sevtion and at what rate?

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3 Replies

Abhishek Bagaria (13 Points)
Replied 10 May 2007

Yes TDS is to be made on royalty payment to Indian Company @ 5% as Proffessional Fees.

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krunal_love (25 Points)
Replied 18 May 2007

Ref sec 9 in detail

Rajesh Bajaj (433 Points)
Replied 21 May 2007

TDS on Rent of Plant & Machinery, Furniture and Royalty effective from 13th July, 2006 Payment of royalty to a resident in case where such payment exceeds Rs.20,000 during the Financial Year. The rate of deduction shall be 5% under Section 194-J of the Act.