Tds

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bhanu jain (Querist)
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29 May 2019 We have providing services like designing of the building , architecture services and many other service like that and for which we have use many different software. Whenever we buy the new software we provide training to our employee. This training is provided by the external agency who are the experts in that filed.my question is that whether TDS is applicable when payment is made to external agency.

is this professional is cover under section 194J ?

plz provide answer with the relevant case law,

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 May 2019 Yes this professional is covered under section 194J and TDS applicable.

Ranjan Dayal

Ranjan Dayal (Expert)
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30 May 2019 In this it is very clear TDS is deuductible as professional services as defined in sec 194J whose gist are as under
Fees for professional or technical services.

194J. (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, or

(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or

(c) royalty, or

(d) any sum referred to in clause (va) of section 28,

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 ten per cent of such sum as income-tax on income comprised therein :

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