Tds on testing fees

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 October 2012 Our Company is into manufacture & export of food products. Pre-requisite condition for export is to get the food products tested by a recognised agency. The samples are sent to an agency by the name Pilot Test House.This agency is an export inspection agency. For carrying out the inspection, we need to pay certain fees to them. We would like to know whether the fees are in the first place taxable? If so, under which section of The Income Tax Act? We have been informed that the fees would be covered by S. 194J as fees for technical consultancy services. The agency , however opines that it is an agency under the jurisdiction of Ministry of Commerce, Govt. of India, hence not liable to TDS. The agency has not provided any exemption certificate for the same. Please let us know whether the testing fees would be covered by S. 194J or exempt from tax. Thanks in advance.