Professional Documents
Culture Documents
- advertisement (note 3)
- Clearing & Forwarding agents
Category Definition Illustrative list of expenditure Illustrative list of expenditure excluded
covered (including as per CBDT (including as per CBDT Circulars)
Circulars)
Commission / Commission or brokerage includes any payment Payment for: Payment for:
brokerage (Section received or receivable, directly or indirectly, by a - advertisement (note 3) - professional services, except services
194H) person acting on behalf of another person for in the nature of advertising
services rendered (not being professional services) Commission to:
or for any services in the course of buying or - real estate agent - insurance commission
selling of goods or in relation to any transaction
relating to any asset, valuable article or thing, not
being securities
Rent (Section 194I) As per section 194-I, “rent” means any payment, Rent paid for: Payment of refundable deposit
by whatever name called, under any lease, - land
sublease, tenancy or any other agreement or
- building
arrangement for the use of (either separately or
together) any, land; or building (including factory - machinery, plant or equipment
building); or land appurtenant to a building - furniture, fittings
(including factory building); or machinery; or - hotel (note 4)
plant; or equipment; or furniture; or fittings,
whether or not any or all of the above are owned - business centre agreement
by the payee . - composite rent ( ie rent on
premises and rent on amenities)
Payment of non-refundable deposit,
which can be adjusted against future
rent
Professional Services/ (A) "Professional services" means services Fees paid to: Payment for:
Technical Services rendered by a person in the course of carrying on - lawyers - construction, assembly, mining or
(Section 194J) legal, medical, engineering or architectural like project
profession or the profession of accountancy or - CAs / accountants
technical consultancy or interior decoration or - engineers - routine / normal maintenance
advertising. contracts
- architects
(B)"Fees for technical services" means any - transfer of the right to manufacture,
- technical consultants
consideration for the rendering any managerial, produce, or process any article or
- interior decorators thing which is chargeable as capital
technical or consultancy services (including the
provision of services of technical or other - managerial consultants gain
personnel) but does not include consideration for - recruitment agencies - transfer of a right to carry on a
any construction, assembly, mining or like project business, which is chargeable under
undertaken by the recipient or consideration which - reimbursement of actual
expenses, if forming part of the the head capital gain
would be income of the recipient chargeable under
the head "Salaries bill amount.
Category Definition Illustrative list of expenditure Illustrative list of expenditure excluded
covered (including as per CBDT (including as per CBDT Circulars)
Circulars)
(C)" Royalty" means consideration (including any - for copyrights, know-how,
lum sum consideration but excluding any design .( Inserted)
consideration which would be the income of the
recipient chargeable under the head' Capital gain') - non-compete fee and exclusive
for: rights
(i) the transfer of all or any right
(including the granting of a license)
in respect of a patent, invention,
model, design, secret formula or
process or trade mark or similar
property;
(ii) the imparting of any information
concerning the working of, or use of,
a patent, invention, model, design,
secret formula or process or trade
mark or similar property;
(iii) the use of any patent, invention,
model, design, secret formula or
process or trade mark or similar
property;
(iv) the imparting of any information
concerning technical, industrial,
commercial or scientific knowledge,
experience or skill;
(iva) the use or right to use any industrial,
commercial or scientific equipment.
(v) the transfer of all rights (including
the granting of a licence) in respect
of any copyright, literary, artistic or
scientific work including films or
video tapes for use in connection
with television or tapes for use in
connection with radio broadcasting,
but not including consideration for
the sale, distribution or exhibition of
cinematographic films; or
Category Definition Illustrative list of expenditure Illustrative list of expenditure excluded
covered (including as per CBDT (including as per CBDT Circulars)
Circulars)
(The above chart considers the view expressed by CBDT in its circulars. In certain cases, the CBDT view may not be the correct view & an assessee can depart
from the CBDT view. However, this may result in litigation. In case there are any items of expenditure, where VW / payee feel that TDS is not attracted, then we
could discuss this over a call).