Dilip (Working) (408 Points)
16 December 2009TDS on agency fees will be deducted u/s 194J or 194C ?
Eg: Mr. A is an owner of electornic retail shop. here Mr. B has brought Mr.C for purchase of some items from A. C purchase some item to the extent of Rs 20 Lacs. after this Mr. B is asking an lumsum agency fees of Rs. 250000 from A. so want to know whether Mr. A should deduct tds under which section. ?
sriram
(CA)
(281 Points)
Replied 16 December 2009
wrt your example i suggest ut must be taxed under 194 C and it has got nothing to do with 194 J
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 16 December 2009
Sriram,
Wouldnt it fall under 194H i.e.other commission/brokerage?
Navneet Gupta
(Article)
(129 Points)
Replied 16 December 2009
neither 194C nor 194J. there is a separate provision in the Act for tds on agency fee i.e. sec 194H (commission).
remember, nomenclature is not relevant. what is relevantis the nature of payment.
agency fees is a comission u/s 194H and hence tds is deductible under that section only.
CA Sidhi Gaur
(Chartered Accountant)
(247 Points)
Replied 17 December 2009
yes..tds wl b deductible u/s 194H
MAHENDRA KUMAR BAGRECHA
(FCA)
(1402 Points)
Replied 17 December 2009
First of all you should understanding applicability of section 194C,J and H. section 194C is applicable in case of works contract/labour contract etc. 194J is applicable on professional payments and section 194H is applicable on payment to an agent. As per fact of your case, Section 194H will be applicable.
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