TDS 194C OR 194J

AS PER MY VIEW 194 C TDS TO BE DEDUCTED 

U WILL GENERATE INVOCIE AND TDS DEDUCT SEC 194C

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

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

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

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

 

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 

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.