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.

[Ganeshan Kalyani]

In my view, it would be 194J.

AI Summary

TDS classification: franchisee fee payments treated as fees under 194J rather than contract payments under 194C. Query whether TDS applies under 194J or 194C where a franchisee deposits student fees with the franchisor, receives a 70% share after the franchisor retains 30% and deducts 10% TDS from that share, and where the relationship is described as agency or contract to run franchisor courses; respondent advised treatment under 194J.