Provision to deduct TDS on Royalty
This query is : Resolved
08 March 2009
Sir,
I have a request for clarification. If a proprietor whose turnover/gross receipt is below 40 lacs. He is running a computer institute (Franchisee). He is paying aroung 1.5lacs yearly to the Franchiser as a Royalty. whether he has to deduct TDS on the payment? ITO insisting him to deduct TDS.when I searched many books I couldnt find this provision. I want an urgent clarification. since his account is not to be audited u/s44AB he is not liable to TDS..Am I right? kindly clarfiy.
I have a request for clarification. If a proprietor whose turnover/gross receipt is below 40 lacs. He is running a computer institute (Franchisee). He is paying aroung 1.5lacs yearly to the Franchiser as a Royalty. whether he has to deduct TDS on the payment? ITO insisting him to deduct TDS.when I searched many books I couldnt find this provision. I want an urgent clarification. since his account is not to be audited u/s44AB he is not liable to TDS..Am I right? kindly clarfiy.
CA.Tarun Maheshwari
(Expert)
08 March 2009
Yes, you are right. If a person is not covered in Tax Audit, he is not liable to deduct TDS.
09 March 2009
Thank u for ur reply... and solved my problem...thanks a lot....
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Late Filing Fee Waiver for Q1 Form 144 (Earlier 27Q) – Transition to Income-tax Act, 2025
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- GSTR-9C filing
- Import Order Cancelled.
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- Gift to nri relatives residing in usa
- Capital Gains Tax on Inherited Mutual Fund
- TDS- 2026-27 Q1 Correction
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
