TDS on payment of Goodwill

[Rahul Bagaria]

Hi

My company will be making a payment on acocunt of goodwill to a dealer before seperation.

Am i suppose to deduct TDS and under what logic.

 

Thanks

[CAGOPALJI AGRAWAL]

It needs review of the separation agreement first.

AI Summary

TDS on goodwill payments depends on separation agreement terms; review the agreement before deciding on withholding. Whether TDS is deductible on payment of goodwill to a dealer before separation depends on the terms and characterisation in the separation agreement; the agreement must be reviewed to determine withholding obligation.