TDS u/s 194C or u/s 194H

Faisal Khan (Chartered Accountant) (77 Points)

06 August 2010  

Facts of the case:-

An export promotion council arranges trade fairs outside India...

For this purpose it takes land in foreign countries on rent from a foreign company....

The land is arranged by an Indian Company on the condition that the Council will pay 1% of rent amount to the Indian (mediator) company...

There is a contract between the Council and mediator company that, the company will arrange land in foreign countries for the council as and when required...

Question:- under which section the council will deduct TDS on payment to mediator company? u/s 194C (contractors) or u/s 194H (Commission and Brokerage) ?