TDS Applicability

Our client is an unrecognized educational organization operating through own centers and Authorized Training centers (ATC) through third parties.

As per the contract (for authorized training centers) “all costs are born by the said centers, the student collections are made in the name of our client, client oblige to reimburses 75% of student collection to concerned centers.”

Invoices are raised in the name of our client however in majority of cases the centers transferred only the remaining share of 25% of total collection to our client.

Now my queries are
1. Is this is a Diversion of income by overriding title? If yes, then whether we have to deduct TDS on such amount (diversion of income by overriding title)? - if reimburse later on and if these does not constitute diversion of income by overriding title then is it possible to make the contract as such without affecting our gross turnover?

2. In case above does not constitute diversion of income then whether TDS should be deducted from above 75% reimbursement as royalty? If yes, then is it possible to deduct the TDS after adjusting the cost of ATC?

Please shed light on above.

Replies (1)

Hello............,

any suggesstion ???????

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details