12 October 2009
We are a public limited company belonging to food processing unit and our nature of business is sale of milk and ice-cream. In an institutional sale scheme, we have an agreement with the authorised railway catering service provider who will allow us their space for a support sale of milk and ice-cream from their stall for which we have to pay them a license fee for support of catering? Now, whether, this can be brought a contract of sale of space or otherwise? Whether any tds on our part is applicable? please help?
12 October 2009
I am sorry it's not sale of spece but renting of space. Though we are making the payment as license fee there is a cluse in the agreement against which we have pay the municipal tax also.
12 October 2009
TDS u/s 194I should be deducted. Since "Rent" means any payment, by whatever name called, under any lease, sub-lease, tenance or any other agreement or arrangement for the use of any- land or building or land appurtenant to a building (including factory building). Further, whether or not any or all of the above are owned by the payee.
CAclubindia
