I have a doubt regarding TDS u/s 194J. I am working as a Finance Officer in a project. This project is being funded by Global Funds and we have a Principal Recipient in India. We are Sub-Recipient and under us we have 13 Sub-sub- recipients. We have three posts namely Training Coordinator, Finance Officer and Accountant. My doubt is whether we need to deduct TDS u/s 194J for accountant. They are not professionals. Their qualification is M.Com or MBA sometimes. I have been instructed from our PR to deduct TDS to accountant also. Pls clarify the same as soon as possible. And also may I know under which kind of assessee we will be assessed? Expecting the replies soon.
09 March 2012
You need to deduct TDS u/s 192 and not u/s 194J. Reason being, all the three people are full time employees in your organization and you need to act under the supervision of PR or some other management people. To deduct u/s 194J, in addition to the person being a professional (as mandated by IT Act), the deductee has to act independently. This independence is not there in your case and hence TDS has to be deducted as salaries and not as professional payments.
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