Our company has placed an order for making of a model of our factory project in the ratio 1:100 as per designs provided by us. The total cost of making of such model is Rs. 62,000. Now the question is whether we need to deduct TDS u/s 194J or 194C on part payments to be made to the maker of such model. Pl. note that we are not providing any material to the person for the purpose.
19 July 2011
Section 194C will not attract since the work is done with materials using material purchased otherwise than from your company. Pl refer definition of 'work' given in clause (iv) of explanation to section 194C. However, data given is insufficient to comment on the applicability of section 194J.
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