Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 hi expert,
A company hired a consultant who
1. Assits in straightening the Accounts Payable process.
2. Liaisions with the bankers
3. Assits CFO on issued addressed to him.

The consultant works in the office from 9 to 6 or 7pm just like other employees.

My question is at what rate TDS should be deducted on payments made to him. (Payment given to him exceeds the TDS threshold limits).

Pls mention the section for TDS.

Ganeshbabu K

Ganeshbabu K (Expert)
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06 June 2013 Services rendered by him are covered under definition of professional services under section 194J

TDS @ 10% IS TO BE DEDUCTED

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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06 June 2013 Yes. it is professional services so TDS u/s.194J apply @ rate of 10%

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CS RAJESH C.CHOUDHARY

CS RAJESH C.CHOUDHARY (Expert)
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07 June 2013 10% TDS is Correct.

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 Thanks to each expert for your reply.

I forgot to mention, the consultant is paid on a monthly basis, so TDS @ 10% is to be deducted from the payment made in each month? Am I correct??

Lastly, the company has hired him but no written contract has been made, is TDS applicable in this case as well.

thanks!

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2013 No contract required

yes, TDS@10% on gross amount of invoice(including servicetax charged on bill)

SO DEDUCT AND REMIT TDS TO GOVT.UNDER SECTION 194J

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 Thanks sir!

An individual is working on contract, so after what limits is he liable to add service tax in his bill (submitted to the co.)

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2013 if gross amount charged exceeds more than 10 lakhs

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Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2013 thanks again.

am checking the bills from 2009 year onwards, pls tell me whether the limit of 10lakhs for ST applicability is same from yr 2009 to 2013.

Ganeshbabu K

Ganeshbabu K (Expert)
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07 June 2013 how can you check service provider bills..

no need ,

if service provider not charged service tax on bill you are not under liability to pay service tax to him.

more over service provider needs to charge service tax if service provider professional receipts exceeds 10 lakhs ...(all bills raised by service provider to all of his clients,,you cannot consider service tax liability from your point of you)

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Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2013 thanks again,

the consultant is an individual person and works only for one company.
Co. paid 7.50 L p.a. for 2009 and yr. 2010
then 8 Lakhs p.a. for each of 2011 & 2012.

Is the consultant below the Limits of service tax in each of the years from 2009 to 12? (he works only for one company).

Ganeshbabu K

Ganeshbabu K (Expert)
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10 June 2013 Yes..it is less than 10 lakhs

once his gross receipts exceeds 9 lakhs he mandatorily required to take servicetax registration and once gross receipts exceeds 10 lakhs he need to pay service tax to department which was claimed in his bills to service receivers

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