payment to payroll outsourcing agency
This query is : Resolved
darpan chheda
(Querist)
17 September 2010
Recently our company has decided to outsource the payroll function to an agency . Now under the agreeement, we are required to pay the following charges to the agency in relation to the work
- Data migration &processing fees 15000(INR)
- Sub-code generation 500(INR) per location
- Salary & Payslip processing 24(INR) per employee per month
- Web developing & other reports 3000(INR) per man day
Now the question is, under which section the above transation is subject to TDS...? Sec 194 C or 194 J. Please explain giving reasons
Await your replies eagarly..
Thanks in advance
- Data migration &processing fees 15000(INR)
- Sub-code generation 500(INR) per location
- Salary & Payslip processing 24(INR) per employee per month
- Web developing & other reports 3000(INR) per man day
Now the question is, under which section the above transation is subject to TDS...? Sec 194 C or 194 J. Please explain giving reasons
Await your replies eagarly..
Thanks in advance
17 September 2010
In my opinion , TDS will apply under section 194J.
17 September 2010
The reason : Its not a simple contractual payment , instead its a payment for providing a service, which itself is technical in nature.
darpan chheda
(Querist)
17 September 2010
Thanks a lot sir for the reply.
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