TDS section

[Syed Vasiullah]

Hello. I have a query regarding TDS. I have taken a franchise of a paramedical education institute and the payment process is like, i collect the fees from the students and i need to deposit all the collections to the franchisors account and he will give back my franchisee share of 70% after retaining his 30% and he deducts 10%TDS from my 70% share and gives me the remaining. I want to know if this has to be u/s 194J or 194C ? Since i am not rendering any professional service directly to the franchisor and it is like an agency or contract to run franchisors courses under his brand name. Kindly experts help solving this issue.

Regards - S.Syed.

AI Summary

Franchise Manager Seeks Clarification on Applicable TDS Section for Income; Expert Suggests Section 194J Over 194C An individual managing a franchise for a paramedical education institute inquires about the correct TDS section applicable to their income. They collect fees from students, deposit the total to the franchisor's account, and receive 70% of the share after a 10% TDS deduction. The individual seeks clarification on whether this transaction falls under section 194J or 194C, given that they are not directly providing professional services but rather operating under a contract. An expert responds, suggesting that section 194J is applicable in this situation.