SUMIT JAIN (18 Points)
20 April 2023
Anuj
(Student )
(32 Points)
Replied 20 April 2023
Pranjal Gupta
(141 Points)
Replied 21 April 2023
.Yes, a private limited company can provide professional or technical services to another private limited company or any other person. The TDS (Tax Deducted at Source) on such payments will be deducted under Section 194J of the Income Tax Act, 1961.
Section 194J deals with the deduction of TDS on fees for professional or technical services. As per the section, any person who is responsible for making payment of any fees for professional or technical services to a resident is required to deduct TDS at the rate of 10% (excluding surcharge and cess) at the time of credit of such sum to the account of the payee or at the time of payment, whichever is earlier.
It is important to note that the TDS deducted must be deposited to the government treasury on a timely basis and the TDS return must be filed within the due date. Failure to do so can result in penalties and interest.
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