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Tds on amc

CA Sunil Kumar Dudeja (Student) (135 Points)

04 July 2012

Can Anybody tell me whether AMC of computers cover under Section 194C or 194J Technical Services, please also provide me the meaning of technical services

Thanks in advance.

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2 Replies

Maruthi (Tds Returns Preparer) (207 Points)
Replied 04 July 2012

Under section 194C, a liability is cast on any person responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between him and—

(a) the Central Government or any State Government; or

(b) any local authority; or

(d) any company ; or

(e) any co-operative society, or

to deduct an amount equal to two per cent of such sum as income-tax on income comprised therein.Under section 194C, a liability is cast on any person responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract between him and—

(a) the Central Government or any State Government; or

(b) any local authority; or

(d) any company ; or

(e) any co-operative society, or

to deduct an amount equal to two per cent of such sum as income-tax on income comprised therein.

***** So, since the AMC of Computers is a Professional Work, Hence the TDS should be made u/s 194J.

Regards

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vishwam (article trainee) (82 Points)
Replied 04 July 2012

HI SUNIL AS PER MY KNOWLEDGE ANNUAL MAINTENANCE OF COMRUTERS IS A CONTRACT.AND ITS NOT A TECHNICAL SERVICE.TECHNICAL SERVICE MEANS RENDERING OF ANY MANAGERIAL,TECHNICAL OR CONSULTANCY SERVICES.SO YOU HAVE TO PROVIDE TDS UNDER 194C

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