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TDS on Professional Fees

Anil (service) (88 Points)

20 October 2009

Dear All

Can anybody clarify that TDS on Intierior Decoretor's work will come under which section 194C or 194J

As per section 44AB intierior decoration falls within the defination of Professional.

Thanks

Anil

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9 Replies

Sorabh Gupta (Manager ( Taxation )) (877 Points)
Replied 20 October 2009

Anil

it is totally depends on the nomenclature of terms & condition defined in the contract.

But normally it is covered under 194C not under 194J ........

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Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 20 October 2009

Intererior decorator's work is mainly work done on the basis of specification given by the party. this means there is a contractual relation between the party and interior decorator. Hence, TDS u/s 194 C shall apply.

regards,

ratan

Sunil (Trader) (2611 Points)
Replied 20 October 2009

I beg to differ with Ratan. Interior decorator is a specified profession u/s 44AA. It is a professional payment and deduction is u/s 194J if design work and consultancy is involved. If the interior decorator would fall under definition of purely a contractor doing contract of construction, then only apply 194C.

I remember when Service Tax was just started on interior designers under engineering consultant category, the contractors doing the construction part like painting etc. were excluded. The electrician doing wiring work was excluded but the person doing designing and consultancy of electricals was included.

It is better to first see how the item is billed. If there is any element of consultancy in it safer to deduct u/s 194J. The test for income tax would be same as for what service tax used to do.

Between 194C and 194J also study the advertising agency or media as 194C and the advertising consultant or model or designer as 194J. This same test would apply.

Bablu Kumar Jha (Accounts Manager) (266 Points)
Replied 20 October 2009

Dear Anil

i aggree with mr. saurabh gupta,

its totaly depends upon nature of work & Aggrement.

Int. Decorator fall u/s sec 194-C not other.

Deeps (Article Assisstant) (2485 Points)
Replied 21 October 2009

Pl. check this attached file.

Attached File : 22 tds 194j.doc downloaded: 898 times

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Anuradha (as company secretary) (27 Points)
Replied 21 October 2009

send me the check list for secretarial audit report

Sunil (Trader) (2611 Points)
Replied 21 October 2009

Thanks Deepika.

Although paying interior decorators is not my subject, I somehow felt that 194 J was correct for cases where consultancy is involved.

What people keep confusing is they call your house painting contractor or furniture making contractor an interior decorator. He is not an interior decorator but has somehow got generalised as one.