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TDS applicable??????

CA Priya (CS Final) (1049 Points)

07 March 2010

Hey buddies......... Pls some one tell me whether TDS is applicable for Subscripttion and membership....... In my case its membership fee paid........ If yes pls refer source......... I think its not applicable.........

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6 Replies

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 07 March 2010

to the best of my knowledge, tds is not applicable in case of subscripttion / membership fee

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Bala (Student) (498 Points)
Replied 08 March 2010

I think no tds provision is attracted

Sanjay (CA Final n CS Final) (324 Points)
Replied 09 March 2010

Subscriptttion & Membership fee does not come within the perview of 194C as it is not a contract forcarrying out any work.

Also 194J is not applicaple.

Therefore, TDS does not apply on above payments

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 09 March 2010

TDS is not applicable

Poornima (Search on.... for knowledge) (129 Points)
Replied 09 March 2010

Agree with Anshu, Balkrishna, Deepak and Sanjay

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Rajat Singhal CA,CS,CFA (Senior Manager (F&A)) (254 Points)
Replied 09 March 2010

Dear Priya,

Please Give the details of your case.

If an Employer has paid the membership fees of any club, credit card, etc on behalf of the employees then it is to be treated as a perquisite in the hands of employees and would be chargable under the head salaries. As a result TDS would be deducted under section 192.

Please refer to the following :-

In case of membership of a club, all sums paid by the employer except in respect of usage charges to the extent it is official is to be treated as a perquisite. If the membership is a corporate membership the initial depositor fees is not to be taken as a perquisite. Similarly, health and recreation facilities provided to all employees uniformly will not be treated as a perquisite. If assets owned by the employer are used by the employee, 10 per cent of the original cost will be treated as a perquisite.

Thanks & Regards

Rajat