Whether tds is applicable on csa charges fees?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2014 My client provides consultancy services to IBM. As per agreement between us, supplier( My Client) agrees to pay CSA usage charges fees 0.05% of the PO.

My queries is that, whether TDS is applicable on that CSA charges fees paid to IBM.

CSA Charges:- Meaning of CSA is Contractor Sourcing Application. This is the portal where the resume of the resources are uploaded for creation of PO.

Thanks in advance

Nitin Bhuta

Nitin Bhuta (Expert)
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04 June 2014 Yes tds would be applicable.

If payment is in the nature of contract then 194C is applicable or it is in the nature of technical services then TDS applicable u/s 194J.