Tax Deducted at source-Urgent query

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CA Parul Saxena (Querist)

09 December 2010 Hello fiends.

Can anyone please tell me that AMC of Computer will be covered u/s 194C or 194J.I mean that if i have made a payment for AMC of computer whether i should deduct tds @2%i.e.u/s 194C or @10%i.e.u/s194J.

My opinion is that AMC of computers are not coverd under technical services.

Please everyone share your views.It is an urgent query.

Thanks.

Regards
PARUL SAXENA
9891087407

Sunali

Sunali (Expert)

09 December 2010 Hi Parul,

In my opinion TDS on AMC is required to be deducted u/s 194C being in the nature of normal maintenance charges on contract basis and in the absence of any other explicit notification by the Department in this regard.

Satish

Satish (Expert)

09 December 2010 AMC on computers is deductable U/s 194J...as the AMC is on Techical Nature and only professionals can able to do the JOB...

CA Parul Saxena

CA Parul Saxena (Querist)

09 December 2010 hi satish.

Thanks for the info. but could you please tell me the exact definition of technical services.
bcoz in my opinion AMC of computers are different from software & hardware engineer's services.AMC is normal maintenance and if should be coverd under sec.194j then why normal repair & maintenance of electricity and some other thing are not covered in this section.

Balakrishnan

Balakrishnan (Expert)

10 December 2010 Amc on computer is also like maintenance of any other machinery. Technical, Professional etc will apply in case of brain and specialised works. Computer maintenance is just like other machine jobs and no secret about it. Hence only 194C applicable

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