Swaminathan (Chartered Accountant) (84 Points)
20 April 2009Now a days almost all banks are giving loan against Gold and for the purpose of valuation they are using the services of goldsmith.
The fees for the goldsmith is collected from the borrower and the end of the month the bank pay for the services of Valuer.
Is bank is supposed to deduct TDS on the same u/s 194J.
Swaminathan
NANDURI RAVI SURYA NARAYANA MU
(ACCOUNTANT)
(194 Points)
Replied 20 April 2009
| Originally posted by :Swaminathan | ||
| " | Now a days almost all banks are giving loan against Gold and for the purpose of valuation they are using the services of goldsmith. The fees for the goldsmith is collected from the borrower and the end of the month the bank pay for the services of Valuer. Is bank is supposed to deduct TDS on the same u/s 194J. Swaminathan |
" |
yes the banks must deduct TDS after the crossing of the limit specified by the IT Act U/s. 194J.
CA CS CIMA Prakash Somani
(Landmark Group)
(23502 Points)
Replied 20 April 2009
Yes, TDS needs to be deducted.
Arpit Gupta
(Chartered Accountant )
(95 Points)
Replied 20 April 2009
sec. 194J deals with TDS on professional and trechnical services
service provide by goldsmith should be considered as technical service in the eye of the LAW since this service of valuation can be provided by only an expert hence TDS should be deducted
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 20 April 2009
Gold Smith is supposed to be the technical expert for the purposes of valuation of gold. Hence the payments made to goldsmith for the purposes of valuation, if they exceed the prescribed limits, shall be liable for TDS. So, in my opinion, the banks should deduct tax on such payments u/s 194J
CAclubindia
