a co. pays exhibiton fees organized by confederation of indian industires , a non profit organsatn for getting a floor space in the exhibition.should tds be deducted , as the payee does not derive ne income out of this as such exhibtion are based on mutuality concept ,?
nd if t.d.s is deductible then wedr 194c will apply or 194i will b considered ?
As per the circular no. 715 dt 8/8/95 Contract for putting up a hoarding is in the nature of advertising contract annd provision of section 194C would become applicable, however it may further be notified that if a particular person has taken a particular space on Rent and thereafter sublets the same fully or in part for putting up a hording, he would be liable to TDS under section 194I and not section 194C. In your case, which it understand is that usually exibition are held on a let out property, if it is so Section 194I would apply. As far rate is concerned it wil depend upon the Type of assessee.section 194I will apply. This is clear from definition of rent as per section 194I , which is as follows: [(i) “rent†means any payment, by whatever name called, under any lease, sub-lease, tenancy or any other agreement or arrangement for the use of (either separately or together) any,— (a) land; or (b) building (including factory building); or (c) land appurtenant to a building (including factory building); or (d) machinery; or (e) plant; or (f) equipment; or (g) furniture; or (h) fittings, whether or not any or all of the above are owned by the payee.
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