DSC Service

This query is : Resolved

Marimuthu (Querist)
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13 March 2024 Dear Experts,
1 A company is getting the DSC CLASS III for its Directors.
2 Getting the DSC, is a professional service or contract service
3 194C or 194J will be applicable?
4 Pls clarify

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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06 July 2024 Let's address each of your queries step by step:

1. **DSC Class III for Directors:**
- Acquiring DSC (Digital Signature Certificate) Class III for directors is typically considered a professional service. This involves the issuance and management of digital certificates that comply with specific security standards for authentication and signing purposes.

2. **Nature of Service - Professional or Contract:**
- In the context of GST (Goods and Services Tax) in India, the classification of services into "professional services" or "contract services" depends on how the service is defined under GST laws:
- **Professional Services (194J):** This category generally covers services provided by professionals such as legal, accounting, consultancy, engineering, technical, etc.
- **Contract Services (194C):** This category covers any service provided under a contract, except for professional services.

3. **Applicability of GST Sections 194C or 194J:**
- Since obtaining a DSC Class III involves a specific technical service related to digital security and authentication, it could potentially fall under either 194C or 194J depending on the nature of the contract and the specific terms of service provided:
- **194J (Professional Services):** If the service involves specialized technical expertise or consultancy in obtaining and managing DSCs, it may fall under 194J.
- **194C (Contract Services):** If the service is more generic and falls under a contractual agreement without involving specialized professional expertise, it may fall under 194C.

4. **Clarification:**
- Without specific details of the contract or service agreement for obtaining DSCs Class III, it's challenging to definitively assign it to either 194C or 194J. You should consult with a tax professional or GST consultant who can review the contract terms and the nature of the service provided to determine the correct GST applicability.

**Key Considerations:**
- **Nature of Service Agreement:** Review the contract/agreement terms to understand if it involves professional expertise or is more of a contractual nature.
- **GST Compliance:** Ensure that the GST treatment (whether under 194C or 194J) aligns with the actual nature of services provided and the terms specified in the contract.
- **Consultation:** For precise guidance, it's advisable to consult with a GST expert or tax advisor who can provide tailored advice based on the specific details of your company's situation.

By clarifying these points and consulting with a professional if needed, you can ensure accurate GST compliance regarding the acquisition of DSC Class III for your company's directors.