08 May 2019
I am in a State Government office. We have hired two manpower agencies to provide outsourced manpower. We deduct 2% TDS on their invoice for service charge under section 194-C. The Pay and accounts office of our state doesn't understand and insists on deducting 10% TDS under section 194-J giving a reason that it is a contract for providing Professional services and is covered under section 194-J. Please guide what can be done in this regard ? The service charge of the agency is only 1.4% of CTC of an employee and when 10% is deducted, it is cut from the salary of an employee which should not be the case. Please guide.
CAclubindia
