Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

TDS as 194J or 194C

Hemant Jain (Article Assistant) (107 Points)

04 December 2007

Dear Friends,

A Contract is given to a Company whose only works is Testing. The bills are raised as testing charges.

So the company has to deduct TDS as 194 J ( as the testing charges are in nature of profesional fees Since the company has no other kind of income) or 194 C ( as the company has given him the contract )

Reply
Follow
Share

15 Replies

Geetanjali (Practice) (99 Points)
Replied 04 December 2007

TDS should be deducted under sec194J as 194C does not govern the deduction of tax at source from payments of fees towards Professional or technical services(In SRF Finance Ltd.v.CBDT)

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

MAHENDRA IYER (SERVICE) (315 Points)
Replied 04 December 2007

Testing charges will be covered under section 194J as technical services.

CA. O.P. Agarwalla (C.A.) (2916 Points)
Replied 04 December 2007

I think, testing work falls under "technical services". Section 194J will apply.

1 Like

suman nvss y (article assitant) (147 Points)
Replied 04 December 2007

testing charges are not professional charges. tds u/s194 is correct for this charges

Vk Duggal (320 Points)
Replied 04 December 2007

Testing charges are for the fee for technical services and TDS should be 10% plus surcharge+cess

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

Testing does not involve carrying out any work in the nature of physical activities and handing over the physical possession of the works or like carriage of goods or contract of advertising or any contract like a courier company .Testing involves,examination and expressing an opinion on the subject matter and may involve,if sought for,giving an advise on the findings of the test results.For example soil testing,water testing etc which is a Technical work.The meaning of the word contract used by the queriest is in the sense of an agreement and not to be construed as a "Contract" which is mentioned in Section 194C.Hence TDS will be under section 194J.

(Guest)

tds should be deducted under 194 j only since testing charges are technical services under 194 j

(Guest)

since testing needs some skills it will attract tds on profession which no other person can do

(Guest)

tds should be deducted u/s 194j as technical fees

(Guest)

Iam paying 50000/-. to flight ticket provider. Should I deduct TDS under 194 C?

Upgrade to CAclubindia Pro. Subscribe Now!

Rakesh Aggarwal (Manufacturer) (0 Points)
Replied 03 August 2008

Dear Friends,

1) Is there a TDS liability arises on purchase of CAD/CAM software, VAT/CST was charged, someone has told me that TDS is only applicable on labour contracts, if party has charged full VAT, then it becomes sale invoice, although labour content is present, hence no TDS is applicable. Is it true?

2) What is the rate of TDS on AMC of Computer hardware, Computer software, Machinery AMC.

r=rajkumar tripathi (Article) (0 Points)
Replied 07 November 2008

computer taken on rent. At the time of payment of rent will TDS be deducted?

and if TDS will be deducted then under which head it will get deduct i mean it will come under 94C or 94J or 94I

Juzer Sadikot (CA - innovative solutions for Imports and Exports) (1309 Points)
Replied 07 November 2008

Originally posted by :Guest
"	Iam paying 50000/-. to flight ticket provider. Should I deduct TDS under 194 C?	"

Understanding you are covered under the Tax Audit u/s. 44AB

No, refer Circular No.715 dt.8-8-1995.

(Guest)

Originally posted by :Hemant Jain
"	Dear Friends, A Contract is given to a Company whose only works is Testing. The bills are raised as testing charges. So the company has to deduct TDS as 194 J ( as the testing charges are in nature of profesional fees Since the company has no other kind of income) or 194 C ( as the company has given him the contract )	"