TDS on payment made to CA on contract basis

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Shaurya Garg (Querist)
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28 September 2010 Our organisation has hired CA's on contract basis and is making payment of a consolidated sum on monthly basis. Under which section should TDS be deducted on such payments i.e. u/s 192B (Salary) or 194J (Professional Services) and why? Also should the company allow deduction u/s 80C while computation of income for purposes of TDS?

sudhakar ca cwa

sudhakar ca cwa (Expert)
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28 September 2010 194J only becoz you are hiring him as a contract basis and CA is a professional. so 194J is correct.

if he is an employess then TDS needs to deducted on the basis of Salary.

if it is 194J then no question of computation of income so no need of 80C deductions

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