TDS on Membership & Subscription

This query is : Resolved

Sujeet (Querist)
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20 March 2008 Dear sir,
A company pays Membership & Subscription to clubs and hotels for its Directors. The same is claimed as Revenue Expenditure.

Is TDS applicable & if applicable under which provision?

Please Reply.

chetan soni

chetan soni (Expert)
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21 March 2008 If it is in the nature of contract charges then TDS needs to be deducted at source. Failed to deduct will attract the disallowances under income tax act. Section 194C will be applicable to this.

CA Mani

CA Mani (Expert)
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23 March 2008 Yes. If P'ment exceeds 194C Limits, Deduct TDS.

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Sujeet

Sujeet (Querist)
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24 March 2008

MANAS ROUT

MANAS ROUT (Expert)
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25 March 2008 no it willnot attract TDS.

taxindiaconnect

taxindiaconnect (Expert)
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16 July 2009 A payment to hotel / club is not in the nature of a works contract as the club is not doing anything for the payer So provisions of section 194C are not applicable. The club is only doing a business where the willing customer / client goes and enjoys the services / products. Services provided by a club do not fall in the category of professional services as peer section 194J of the IT Act.