Tds u/s 194a

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 April 2013 as per my opinion tds shall be deducted u/s 194A for processing fees charged by NBFC for loan sanctioned.however in my company deduction has be made u/s 194J .Now what should be done since the deduction is made under wrong section and lower amount since the threshold limit u/s 194J is 30000 whereas the limit is 5000 in case of sec 194A.

Please revert back as soon as possible. It's urgent.
Thanks in advance.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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28 May 2013 194A is for Interest and 194J is for professional and technical services. Hence, you are covered by Section 194J and there should not have been any deduction at all for Rs. 5,000/-. You have to issue the TDS certificate through NSDL by uploading the correct TDS return, the party will get the credit for the TDS