T.D.S. Problem

This query is : Resolved

arvind kapoor (Querist)
Follow

24 May 2008 One of my clent had opened a Drug store in a hospital on a condition that the hospital will be paid 50% of the net profit as per audited P& l A/c.What is T.D.S. Liability of the client and under what section it will be deducted 194I or 194C.And also Profit can be ascertained only after 31 st March.So when to deduct the TDS -on 31st March itself and to deposit it by 31 st May or whenever some payment is made to Hospital during the year.

MANISH MISHRA

MANISH MISHRA (Expert)
Follow

24 May 2008 TDS liability will be depend upon nature of arranement between party and hospital.
if such arrangement is in the nature of
commission then u/c194H
if in the nature is provide space for retail counter then it fall under section 194I.
liability will be arise on accrual of such payment as per terms of agreement.