Go AD-Free with CAclubindia Pro and get a FREE CCI Coffee Mug. Subscribe Now!

Retainership Fees

Barkha (Professional) (68 Points)

04 December 2007

What is the TDS rate applicable for retainership fees for the A.Y.2008-09? Whether TDS is to be deducted on retainership fees?

Please reply me.

Reply
Follow
Share

7 Replies

Vk Duggal (320 Points)
Replied 04 December 2007

TDS rate will be 10% plus surcharge & cess i.e. 11.33% ot 10.3% as the case may be.

Upgrade to CAclubindia Pro. Subscribe Now!

MAHENDRA IYER (SERVICE) (315 Points)
Replied 05 December 2007

TDS will apply under section 194J

Nirmal (articles) (92 Points)
Replied 05 December 2007

what does the retainership fees means

Jagrut Shah (Chartered Accountant) (80 Points)
Replied 05 December 2007

Applicable rate is 10% under sec.194J of Income Tax Act. Surcharge is 10% on it.
And 2%+1% Edu. Cess on it.
In Short Tax Rate is 11.33%

(Guest)

Dear Nirmal, When a professional is not employed on a salary basis,he is said to have been retained by his client for rendering professional advice at a fee of a certain amount on a monthly or any other basis.Like after completing your CA you may be offered to render professional advice to your client on a monthly fees of say Rs.25000/-.This is retainership fees.