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
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.
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