Dear Friends,
Could someone enlighten me on the following: I undertake trading in online commodities, in client's own a/c, with their own capital investment and on their behalf, with a mutual agreement of profit/loss sharing on a 50:50 basis. The following queries arise: (For example we will assume that the annual profits are Rs 5.00 lacs)
1. As the entire profits of Rs 5.00 lacs will be in the client's a/c and he repays me half of the same which will amount to Rs 2.50 lacs:
a) Will the client have to deduct TDS from the amount payable to me? If yes, how much? And how will it be deducted monthly or annualy?
b) Will the client have to take TAN number/card for deducting TDS? And what if I have multiple clients? Will every client have to take the TAN number/Card?
c) Alternately will it not be sufficient if the above income from all clients is declared by me in my IT returns, and a copy of the same is submitted to all the clients for their records?
d) Can you please suggest the best way to go about it?
e) Finally, is service tax also appliable to the above, if so how much ?
Thanks & Regards, in anticipation, to all.
CAclubindia
