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Tds on Hr consultancy

Shaik ( M.com,IC(W)AI - Inter) (723 Points)

15 December 2010

Dear All

we are requited employees from one of HR consultancy payment has to be done here my question is how much TDS has to be deducted on invoice is it professional charges or Contractors ?

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7 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 15 December 2010

Yes TDS is to be deducted u/s 194J @ 10%. HR Consultancy comes under Professional Consultancy service and is not considered under contract.

Regards,

Devendra Kulkarni

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CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 15 December 2010

Professional services are infrequent, technical, or unique functions performed by independent contractors or by consultants whose occupation is the rendering of such services. Examples of professional services contracts include those of: accountants, actuaries, appraisers, architects, attorneys, brokerage firms, business consultants, business development managers, copywriters, dentists, distributors, engineers, funeral directors, law firms, physicians, public relations professionals, recruiters, researchers, real estate brokers, translators, software engineers, value-added resellers and web designers.

Hence, TDS deduct u/s 194J @ 10%. if amt. exceed Rs.20000/-p.a. before or upto 30-06-2010 and from 1-07-2010 amt. Rs.30000/-p.a.

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