Tds 194j vs 194c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 September 2012 Dear Experts,
Please help me out by suggesting me what is the differences between 194J and 194C as we are asked by our director to change from 194J to 194C andas we are little aware about TDS deduction process, would any of you kindly help us with valuable information.

Thanks

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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16 September 2012 Tds u/s 194J is on Professional Fees @10%
TDS u/s 194C is on works contract 2% in case of companies and 1% in case of individuals

SANYAM ARORA

SANYAM ARORA (Expert)
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16 September 2012 If you are making any payment to professionals i.e CA, CS , etc you are bound to deduct tds @ 10% & deposit with the Government.

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SANYAM ARORA

SANYAM ARORA (Expert)
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16 September 2012
(1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of -

(a) Fees for professional services, or

(b) Fees for technical services, shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent of such sum as income-tax on income comprised therein :

Provided that no deduction shall be made under this section - (A) Fom any sums as aforesaid credited or paid before the 1st day of July, 1995; or
(B) Where the amount of such sum or, as the case may be, the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed -

(i) Twenty thousand rupees, in the case of fees for professional services referred to in clause (a), or

(ii) Twenty thousand rupees, in the case of fees for technical services referred to in clause

SANYAM ARORA

SANYAM ARORA (Expert)
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16 September 2012 Explanation : For the purposes of this section, - (a) "Professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section;

SANYAM ARORA

SANYAM ARORA (Expert)
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16 September 2012 Section 194 C is applicable when payment is made to a contractor.

http://www.topcafirms.com/index.php/white-paper/featured-white-paper/4348-detailed-analysis-of-tds-for-contractor-194c-by-kc-singhal-advocate

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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16 September 2012 To the above i would like to add that u/s 194J the limit of Rs.20000/ has been raised to Rs.30000/- per bill and Rs.75000/- in aggregate pa.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)
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16 September 2012 Mr. Arora the limit has been raised to Rs.30000/-

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