TDS on Techinical AMC contract

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Pravin Deshpande (Querist)
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29 May 2010 Please tell me Which tds section applied for Techinical AMC contract for IT services, Computer servises 194C or 194J if contract is made

Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 May 2010 Routine/normal maintenance contracts which include supply of spares will be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source.

Circular : No. 715, dated 8-8-1995.

So section 194C must apply as it is a contract

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Pravin Deshpande

Pravin Deshpande (Querist)
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29 May 2010 means in this case we made contract of techinical service the section will be 194j

thanks

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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29 May 2010 if contract itself is of technical service then TDS u/s 194J