TDS

This query is : Resolved

CA Suresh Paghdar (Querist)
Follow

04 April 2009 ONE OF MY CLIENT ENTERED IN TO CONTRACT WITH RELIANCE INDUSTRIES LTD(RIL) FOR FOLLOWING JOB.
1)REMOVAL OF JUNCTION BOX,CABLE,PRESSURE GUAGE,TEMPERATURE,GUAGE,SWITCHES,TRANSMITTERS
2)LAYING OF CABLE & CABLE TRAY,SS TUBE
3)INSTALLATION OF STEELSTRUCTURE,JUNCTION BOX,SS TUBE,FABRICATION,FIXING,PAINTING & GROUTING OF INSTRUMENT ETC
4)QUALIFICATION OF MY CLIENT IS MECH.ENGG.AND ON THAT BASIS RIL DEDUCTING TAX @10.3(94J TECH. SERVICE)
SO,Pl.CAN ANYONE PROVIDE ME A CASE LAW OR CICULAR SO I CAN CONVINCE HIM THAT HE IS LIABLE U/S 194 C NOT 194 J ?

K V Subba Rao

K V Subba Rao (Expert)
Follow

04 April 2009 It is a matter of common knowledge that your Client who is a Mechnaical Engineer does not HIMSELF remove Junction Box etc., lay cable etc, instal steel structure and fabricate

He plans entire activity, draws up plans and specifications in consultation with the Company which entrusted job to him. He inducts capital, borrows from Banks and engages Supervisors and Workers to DO the work and only MANAGES the entire work.

It is unfortunate that Company affects TDS u/s 194J

However, you may like to check, if the following link helps you

http://www.bcasonline.org/articles/artin.asp?366