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.
CAclubindia
