Mihir (Wealth Manager) (5293 Points)
19 July 2011A Shipping agent offering services to a client for agency fees. The client deducts 10% u/s 194J and not 2% u/s 194C.
What is the real difference between 194J and 194C?
Clearing & Forwarding agents come under 194C. Shipping agents are slightly different from Clearning & Forwarding agents. Shipping agents clear the documents at port/customs for bulk cargo vessels and not containers.
Thanks
CS Bijoy
(Expert)
(6394 Points)
Replied 19 July 2011
194C is for contract and 194J is for Professional fees but in case of any contract you providev the materials that means you higher onlt his service and at that time 194J will be applicable.
valji
(Accounts manager-MBA)
(2150 Points)
Replied 19 July 2011
it come under sec 194c ,194c is for contractor & 194j for professional who provide professional service for exemple doctor,engineer,chartered Accountant ,lawyer for provide their professional service
clearing & forwarding charges it come under contract , they charges for thier service per bill as agency charges it come under circular of tds under sec 194c
Mihir
(Wealth Manager)
(5293 Points)
Replied 19 July 2011
CBDT circular 715 dt 8/8/1995 clarified the issue. But can we interchangeably use clearing & forwarding agents with shipping agents for the purpose of TDS deduction u/s 194C and not 194J?
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