TDS on Job Work Done
This query is : Resolved
11 August 2010
Hi All,
Our company is in IT Services, we have develop one software. On this software data entry work done by another party. They generate the invoice on work done basis like, no. of entry x their rate. We don't have any work contract with them.
This is come under Contractor or Professional Fees???
We have TDS deducted u/s 94J @10%, is this right or Wrong??
Pls. reply soon
Thanks & Regards
Pramila Bargode
Sr. Accounts Executive
Our company is in IT Services, we have develop one software. On this software data entry work done by another party. They generate the invoice on work done basis like, no. of entry x their rate. We don't have any work contract with them.
This is come under Contractor or Professional Fees???
We have TDS deducted u/s 94J @10%, is this right or Wrong??
Pls. reply soon
Thanks & Regards
Pramila Bargode
Sr. Accounts Executive
11 August 2010
Right..
Professional Fees under section 194 J.
Professional Fees under section 194 J.
11 August 2010
thank u very much...........
11 August 2010
The bill charged is for data entry service on piece-rate basis. Hence TDS u/s 194C is applicable - 2% or 1%, as the case may be.
11 August 2010
A plain data entry like letters etc can be understood as a non-technical job, but in my view, catering service to an IT services firm & that too in a software application , leads to professional / technical service & hence the safer would be to deduct under section 194 J.
Method of charging in the bill is immaterial in this case, the basic thing is nature of job, which in my opinion is professional / technical service.
Method of charging in the bill is immaterial in this case, the basic thing is nature of job, which in my opinion is professional / technical service.
12 August 2010
Software is delevoped by the IT firm. The data entry firm does only the data entry part. They are not writing any codes or further developing the software.
It appears as the nature of work is plain data entry & nothing technical about it.
It appears as the nature of work is plain data entry & nothing technical about it.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Tds on building rent monthly
- RCM INVOICING FROM NOV-2024
- Should I report my US salary for January, February, March in Schedule FA?
- GST ON EXPORT COMMISSION
- Confusion around Form 26QB fields
- Adjustment entry in the case of Individual and HUF on 31st March
- Stock difference tax applicable on composite rate or normal rate
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
