Quick Answer: Is TDS Deducted On Annual Subscription Fee?

Is TDS applicable on software renewal?

It is the contention of the assessee that software expenses are in the nature of annual maintenance contracts for routine maintenance and renewal of software which cannot be considered as fees for technical services liable for TDS u/s 194J of the Act..

Is TDS applicable on charitable trust?

Non-deduction of tax at source would now attract disallowance in the hands of the charitable trust also. Thus, now trusts will be mandatorily required to deduct TDS as per provisions of Chapter XVII-B of the Act to claim expense as the application of Income. Else the same will be taxable in the hands of Trusts.

Is audit compulsory for charitable trust?

The trust has to comply with section 11 of the income Tax Act. 1. … If the receipts of the trust exceeds Rs. 2,50,000/- for the AY 2018-19, it is to be audited by a chartered accountant and obtained a audit report in form 10B.

What is the TDS rate for professional fees?

Any payment covered under this section shall be subject to TDS at the rate of 10%. From 1 April 2020, the payment of fees for technical service shall be subject to TDS at the rate of 2%. However, w.e.f. 01.04. 2017, the tax on payments made to operators of call centres shall be deducted at a reduced rate of 2%.

Is non resident liable to deduct TDS?

Act 1961 will have no jurisdiction over such a Non-resident. Therefore, the Non-resident will not be under an obligation to deduct tax at source from payments made to persons resident in India for professional or other services.

Is TDS applicable on purchase of laptop?

08 May 2014 TDS is not required to deduct on purchase. … If you want to deduct then refer the list of TDS and try to fit your question in any section. Income Tax department has provided list on which TDS is required to be deducted.

How can I claim TDS refund on professional fees?

Can I file the return under Section 44ADA of Income Tax Act, i.e., on presumptive basis? Yes, you can file the return under Section 44ADA of the Income Tax Act and file through Form ITR-4. The fees being received by you from the company is in the nature of professional fees and not salary.

Is TDS applicable on testing charges?

The tds applicability for testing and inspection charges shall be as per the agreement. If it is done on a contract basis then the tds shall be applicable as per section 194C and if it comes under technical services then the same shall be deductible under section 194J.

What is included in professional fees?

Professional fees are prices charged by individuals specially trained in specific fields of arts and sciences, such as doctors, architects, lawyers, and accountants. “Professional Fees” is usually an income account used by a professional firm in recording its revenues. … Definition of professional fees.

In which cases TDS is applicable?

TDS is applicable to the various incomes received by an individual such as salaries, interest on fixed deposits etc. It is deducted when income is paid/accrued rather than at a later date. For FY 2020-21, the government has reduced the TDS rates on non-salaried payments.

Is trust a person under Income Tax Act?

The position under the Income-tax Act, however, is different and under that Act, “Individual” can only be a living person, that is to say, a natural human being. It should, therefore, follow that in any event, the assessee-trusts before us cannot be assessed to tax in the status of an “Individual”.

What is the limit for TDS deduction?

Section 192- TDS on Salaries: TDS on salaries is deducted at the rate of the income tax slab for the relevant year. For the assessment year 2020-2021 the exemption limit for an individual is Rs 2,50,000.

How do you reimburse TDS?

You need to file a TDS refund claim when the employer has deducted more tax than the actual liability. You can claim the difference amount by filing an income tax return. You will have to provide the bank account number, name of the bank, and Indian Financial System Code (IFSC) details for successful processing.

Is TDS applicable on annual subscription fees?

TDS is not applicable in case of membership fees paid. No need to deduct TDS.

Is TDS applicable on management fees?

While payment of sitting fees, fees for attending meetings etc paid to any director (whether whole time director/managing director or any other director) is considered as payment of professional fees under section 194J. TDS is required to be deducted at the rate of 10% and no threshold limit of rs.

Is GST applicable on membership fees?

GST is applicable for the supply of goods or services in the course of business, and the definition of business includes any provision of benefits provided by a club, association of person, society, or any such body to its members.

Is TDS applicable on health insurance premium?

Such premium would be eligible for a deduction under Section 80D of the Act. The employer can consider such a deduction while deducting tax at source (TDS) on taxable salary.

How do you calculate trust income?

Trust Accounting Income is the formula that determines how much income is available to be distributed to the income beneficiary. You calculate TAI by adding together all items of income and then subtracting all expenses attributable to income.

Can we deducted TDS on repairs and maintenance?

TDS on repair and maintenance is required to be deducted under Section 194C of Income Tax Act 1961 at the rate of 1% or 2% (as the case may be) for payments to residents.

Is TDS to be deducted on membership fees?

Is TDS applicable on Membership Fees & Subscription Fees. Any Provision/Section/Case Law reference? TDS is not applicable.

Is TDS applicable on software?

Royalty includes payment received for transfer of all or any right to use computer software. … On purchase of software from a resident TDS shall be deducted @10% under section 194J.