A club, registered under Societies Act, treated as AOP under Income Tax, runs several sporting activities in its premises like Table Tennis, Badminton, Gymnastic, Yoga etc. It has appointed Coaches for all those sports.
Query is - payments made to all those coaches whether it is liable to deduct tax at source? The AOP is not coming under sec.44AB.
As per my opinion, the club is required to deduct tax from all those payments made to Coaches U/s 194J as the payments are made in professional nature and more than Rs.30,000/- in a year and further the relaxation of not deducting tax is applicable only to Individuals and HUFs. Whether am I correct?
CAclubindia
