11 June 2010
payment to a person for some technical work who is not an engineer whether falls within the purview of 194C or 194J. Whether the person should be professional?
11 June 2010
Contract and Profession depends upon the the type of work provided. As per your facts provided, he is not an engineer so it will not amount to be a professional service. So 194C will apply.
In case it requires specific knowledge, skill and also a membership of any professional body to do the work then 194J will apply.
Check, out whether the type of work provided requires specific knowledge or exam to clear and perform such work. If yes than 194J will apply.
Some of the definition of professions are >
A profession is a vocation founded upon specialised educational training, the purpose of which is to supply disinterested counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain.
"Occupation, practice, or vocation requiring mastery of a complex set of knowledge and skills through formal education and/or practical experience. Every organized profession (accounting, law, medicine, etc.) is governed by its respective professional body."
I hope , it will make you clear about difference between profession and contract.
11 June 2010
Dear, There is an explanation to section 194J , The explanation (a) to section 194J, which is reproduced as below –
Explanation.—For the purposes of this section,— (a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified10a by the Board for the purposes of section 44AA or of this section;
The Notified profession for the purpose of section 44AA are as following -
SECTION 44AA Accounts, Maintenance of, by professionals Notified professions : (a) The profession of authorised representative; and (b) the profession of film artist (actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screen play writer, dialogue writer and dress designer)—Notification : No. SO 17(E), dated 12-1-1977/Profession of Company Secretary—Notification : No. SO 2675, dated 25-9-1992/Profession of Information Technology—Notification : No. SO 385(E), dated 4-5-2001.
From the plain reading of the above it can be observed that the list of professional is covered under the provision of section 194J is an exhaustive list and any other profession does not fall with the meaning of section 194J except listed there. So Accordingly, the type of services provided in your query are not covered under section 194J, but u/s 194C.
CAclubindia
