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TDS 194C OR 194J

Shaik Sharief (Article Assisant) (87 Points)

18 April 2018

if there is a contact employee .. and he provides technical services to the company.. under what sec company will deduct TDS 194C because company and employee entered a contract.. or 194j fees for technical services.

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11 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 18 April 2018

AS PER MY VIEW 194 C TDS TO BE DEDUCTED

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senthilsenthil (Shri Krishna Associates) (54 Points)
Replied 18 April 2018

U WILL GENERATE INVOCIE AND TDS DEDUCT SEC 194C

ashish gupta (12 Points)
Replied 18 April 2018

Why under 94C?

Shashank Dandavate (4 Points)
Replied 18 April 2018

U/s 194J, since he is providing Technical services

Ajay (CA Job) (512 Points)
Replied 19 April 2018

Dear Shaik

First of all, I assume such person is not an employee of the company.

The deduction should be made u/s 194J as the fee for technical services squarely fall under this section.

(On a side note, it seems Section 194J was enacted to overcome the rulings of the various High Courts that fee for professional and technical services do not fall u/s 194C and thereby quashing CBDT Circular 681 dated 08.03.1994 that had put forward such a view).

Regards

Ajay

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Avinash Jeevan Dsouza (Assistant In Charge Accountant) (3292 Points)
Replied 19 April 2018

Yes it should be under 194J. Because it is technical service.

Rahul Prajapati (Student) (2282 Points)
Replied 19 April 2018

The deduction should be made u/s 194J as the fee for technical services fall under this section.

Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 19 April 2018

See, Contract can be with any person for rendering any kind of service.

Section under which tds would be deducted will depends on nature of services to be deliver.

Hence, in your case tds will be deducted u/s 194 J

rajesh kumar jha (Accountant) (22 Points)
Replied 19 April 2018

TDS should be deducted under section 194C as he is a contractual employee for the company. A professional may be a contractual employee too. So as per your agreement/Contract with you should deduct TDS under 194C.