Tds query u/s 194j

Generally speaking almost all the payments are covered under TDS provisions as the motive of the government is to collect the tax on income at the source hence, decreasing the chances of the tax evasion.

However, coming to your case the nature of deduction might not be very correct as per the details given by you.

Probably 194C would have been correct as there is nothing as such a professional service given by the assessee.

In case it had to be deducted under 194C the percentage of deduction would be much lower @ 1 or 2 percent.

Here the learning centres act as a mediator between the studients and the University as such there are no technical or professional services are rendered by the learning centre.  so it is rightly said that the provision of section 194J fees for professional, technical, royalty does not apply.  Since there is an agreement between the both parties, they fall under section 194C contract payments so only 2% should be dedcuted as TDS.

My question is whether learning centre is also conducting classes, exams for the studients?.

IN THE SUCCEDING MONTH UNIVERSITY PAYS TO THE LEARNING CENTRE PORTION OF FEES COLLECTED AS LAERNING CENTRES SHARE AT THE RATES FIXED IN THE AGREEMENT BETWEEN THEM.

Learning center purly gets the contract receipt as decided by L..C.& University Therefore 194C will Become applicable

If any contracts exists between university and learning centres 194C is applicable, other wise it should be taxable as professional income