TDS Query

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  1. dilipkumar

    dilipkumar New Member

    A Institute imparting training in IT holds a frnchaise of a main company. The institute imparts training to carporates. A company has sent cheque for course fees after deducting TDS. However, the institute has to make payment of entire course fees to main company, who will make payment of share of institute after completion of course. Can the institute ask the trainee company not to deduct TDS and make full payment to institutute
  2. Raunak Gupta

    Raunak Gupta New Member

    Hi Dilip,

    In this case you cannot ask the trainees for not deducting the TDS because the trainees being corporates will have to deduct TDS u/s 194J for payment of fees against professional or technical services.

    Instead, here you should write an applications to your AO u/s197 for dedcution of tax at lower rate or no deduction of tax. Here you have to satisfy your AO that the entire fees received by you from the trainees are being sent to the Frachiser Company and your share of Income is much lower than the fees.
    On being satisfied that your income and taxtheron is much lower than the TDS being deducted by the trainees, the AO will give you a certificate u/s197 which then you can show to the trainees who will then not deduct any tax or deduct tax at lower rate, as the case may be.

    Hope i am clear on this issue. If any further query, please do reply on this.
  3. dilipkumar

    dilipkumar New Member

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