Sir,

Ours is a society which is going in or apartments for its members in Delhi under land pooling polciy of the Delhi goverment in N zone adjoining ROHINI

Society has given all its work in reation to advertising, markting, promoion and enrolmen of members to a private ltd cmpany for two reasons

1. to expand base of members in order to get benefit of economy of scale so that cost is reduced

2.   to take over matter of running office and empling staff for maintaing records etc

now the question is while making payment does society need to deduct 2%  tax or 10%

The prvate ltd company is going to pay commission to agents for enrolling members and there they need to deduct 10% on commission paid.

please reply.

A.c.sud

Dear Avinash,

TDS liability on your Society
Your society needs to deduct TDS @ 2% on payment made to Pvt. Ltd. Company u/s 194C as the same is covered under the definition of Work Contract.

TDS liability on that Advertising Company
However that advertising company shall deduct TDS @ 10% on commission paid to agents u/s 194H and TDS @ 10% on payments made to artists u/s 194J.

If you have any questions, Pl post the same.

Kind Regard
TaxReply.com

 
 

2% ON ADVERTISEMENT. EVEN ONE % IF THE RECEIPNT IS AN INDIVIDUAL.

10% ON COMMISSION

FEEL FREE TO POST ANY FURTHER QUARY OR DETAILS