No liability of TDS u/s 194 I if revenue was shared with Franchise without rendering of actual services

ACIT Vs VLCC Health Care Ltd (ITAT Delhi)

Conclusion: Since expenses claimed as share of surplus with the collaborator, it was only sharing of revenue and not the claim of expenditure, as per the terms of agreement, the collaborator did not render any service to the assessee, therefore, the provisions of TDS had no application as sharing of revenue and its impact of taxability vis-à-vis application of TDS provision depend upon the method of accounting adopted by respective assessee.

Held: Assessee was engaged in the business of slimming and

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