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Regarding tds

CA Swapnil Arora (Chartered Accountant) (80 Points)

29 May 2012

Dear All,
Please let me know that where a service provider is an event management Company, Should TDS be deducted on him under 194C or 194J.
That whetehr his event management work shall be treated as contract work or as a professional Service?

Regards

Swapnil Arora

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12 Replies

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 29 May 2012

Deduct u/s 194C

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Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 29 May 2012

According to me TDS shud be made u/s 194J, as the event management co is providing prof service whihc requires application of mind, provided the sums paid esceeds 30k during the year.

KARANDEEP,CA,B.Com,CS FNL (JOB) (457 Points)
Replied 29 May 2012

There is difference between professional contract & work contract, tds is to be deducted accordingly

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 29 May 2012

Sir,

I believe that generally in an event management contract, everything is to be done by the Event Managers. Including supply of materials and all. Then it should be construed as a Contract instead of Prof Fees.

1 Like

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 29 May 2012

Agreed to some extent with Mr Prateek, but still I think that there is some sort of professional work involved. Maybe we get some more views on this.

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Harish (CA) (21 Points)
Replied 29 May 2012

In my opinion if the event manager does the work which all others cannot do that is he has a specific qualification or skill then TDS has to be deducted u/s 194J otherwise u/s 194C

(Guest)

TDS to be deducted under 194J cos specialised services are provided by event managers.

PRITAM JAIN, CA , CS (Practising CA CS) (398 Points)
Replied 30 May 2012

Sec. 194-J : Board has notified person in relation to sports activities as professional services which includes " EVENT MANAGERS" among others.

So I believe that Event Management services should fall under sec.194J.....

Regards

Bhavana Asthana (chartered accountant) (30 Points)
Replied 30 May 2012

In case of event management it can be divided into 2 components 1.Purchases & Supplies 2. Professional service

so tds should u/s 194J on 2nd component

regards

Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 30 May 2012

I agree with Bhavana..but the only thing is that when a Contract includes the supply of materials and the final bill is raised including everything (composite service), then you have to deduct u/s 194C accordingly.