Chitrank Jain (Senior Manager - Group Internal Audit) (146 Points)
28 May 2009A company is showing salary payments to a chartered accountant working in it as consultancy charges, becuase the chartered acountant still holds the Certificate of Practice. Now company should deduct TDS considering these payments as salary or deduct u/s 194J?
Sweta Jalan
(Company Secretary)
(177 Points)
Replied 28 May 2009
Yes, since it is professional fees paid by the company, it shud deduct tds u/s 194J i.e. 10.3%.
CA.Tarun Maheshwari
(CA, DISA)
(7150 Points)
Replied 28 May 2009
Deduct TDS u/s 194J, otherwise it will create problem for both, company as well as CA too, as he is having a certificate of practice, he can not take salary.
Joe
(CA)
(189 Points)
Replied 29 May 2009
Since the company is showing the salary payments as consultancy fees in its books, it is but natural that it deducts TDS u/s 194J to be on the safer side. I agree with the views put forward.
Rajesh U. Ameta
(Properitor)
(63 Points)
Replied 29 May 2009
There is no other option available for company who is paying professional fees to CA. Have to deducte TDS u/s 194J.
CA. Narendra Kumar
(ACA ...ACS)
(81 Points)
Replied 30 May 2009
ya ok with 194J :- salary has ne meaning at all in above cases
most of SIS company are opting same treatemnt and should be opt if alternates are avialable
PRAVEEN KUMAR
(MBA (Finance) B.Com.(P))
(3443 Points)
Replied 30 May 2009
194J i.e. 10.3%. professional fee
deepak K Gujrati
(CA-practice)
(966 Points)
Replied 30 May 2009
As stated if it is a professional fees TDS has to be deducted on monthly basis u/s 194J.
CAclubindia
