194j- tds

This query is : Resolved

Tanvi (Querist)
Follow

14 January 2012 Data entry operators are hired in an institution on an individual basis and not through any contractor, they dont get paid as salary, neither they have any contract.. their income does not come under IT slab rates...so whether deduction u/s 194J shall be made or not? what is the reason behind it?

CA Prashant Gupta

CA Prashant Gupta (Expert)
Follow

14 January 2012 The TDS should be deducted U/s 194J. Reason is:-
i) U/s 194J, TDS is deducted if nature of payment is any sum refered to clause (va) of Section 28.
ii) Clause (va) of section 28 refer the meaning of profession which also includes vocation.
iii) Vocation is a calling in which a person passes his life. it may even stated to be a way of living or a sphere activity for which one has a specific fitness. - K ramaswami Gounder v/s CIT (1987)

So these data entry operators comes under vocation and liable for TDS u/s 194J