tds u/s 194c


This query is : Resolved 

(Querist)
25 June 2009 my query goes like this:

A company is engaged in website designing.

They have a team of people engaged in the said purpose.Among them few are employees on the payroll of the company and rest are the people the company have entered into written contract.

Now my query is whether the TDS on payment made to later is deductible under section 194C or 194J.


25 June 2009 employees on the payroll of the company go through salary slab

Salil Arora (Querist)
25 June 2009 let me clear myself,
the query is regarding payment to people with whom the company has entered into written contract.

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Guest

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Guest (Expert)
29 June 2009 Dear Sahil,

Here's what you need to know, when looking at Tax angle.

1). Employed person - deduction of TDS on the basis of slab rate.
2). Other then Salaries person, you should be deduct TDS as U/s 194J (Professional fees).

Write me PM, if you need further clarification on this topic.

Salil Arora (Querist)
29 June 2009 Dear Deepak

To deduct tax u/s 194J we further need to know if any specific knowledge is required , e.g.the case of CAs, to perform the duty , only then the tax can be deducted u/s 194J as it will then be a notified profession.

if no specified knowledge is required then the tax can be deducted u/s 194C.

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Guest (Expert)
29 June 2009 Yes Salil, you are absolutely correct, if they are technical persons like MCA or software engineer than section 194J is applicable otherwise they will be treated as U/s 194C.

For clarification, please ask your question with suitable example.


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