Hi, can somebody tell me rate of TDS to be deducted if a service rendered from a professional under a contract
30 Replies
N KRISHNA CHAITANYA
(CA Student)
(101 Points)
Replied 18 August 2010
The rate of TDS to be deducted is 10%.
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 18 August 2010
| Originally posted by : N KRISHNA CHAITANYA | ||
 |
The rate of TDS to be deducted is 10%. |
 |
thanks but even though he has signed a contract need to charge TDS 10% pls confirm?
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 18 August 2010
Thanks, but please confirm even though the professional is under a contract need to deduct TDS @ 10%
nandha
(Finance Executive)
(53 Points)
Replied 18 August 2010
TDS at 10% u/s 194 J is applicable.Since the nature of service rendered is professional or Technical though he/she is under contract.
TRILOCHAN
(SENIOR ACCOUNTANT)
(698 Points)
Replied 18 August 2010
TDS rate is 10% under section 194J
CA Abhiram Bharat.
(Assistant Manager Taxation)
(508 Points)
Replied 18 August 2010
tds rate-10%.
tds u/s 194J.
for ur knowledge-i wud lyk to share-
TDS is to chrgeable on the gross amount(inclusive of service tax charged).
however, no TDS shall be deducted if the professional providing services, charges any amount by way of Reimbursement of expenses chargeable otherwise otherthan by way of a contract.
regards-
abhiram
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 18 August 2010
Hi if any professional or technician has been paid for expenses not reimbursment should TDS deducted on such amount paid?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 18 August 2010
Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?
Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.
Circular : No. 715, dated 8-8-1995.
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 18 August 2010
Thanks but an advance payment made to such professional or technician for expenses only is it advisable to deduct TDS as the details will be furnished later on
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 18 August 2010
TDS deductible at the time of payment or credit whichever is earlier. So in case of advance payment deduct TDS at the time of payment of advance.
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 18 August 2010
Dear Mr. Aditya
Thanks for your reply but my confusion is the advance amount is paid for meeting the expenses of company for which details will be given by the professional later on in such event need to deduct TDS pls clarify
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 18 August 2010
Then do one thing that pay the advance. Afterwards when details of expenses are received book the expense and then take back the excess amount of advance if any or in case of excess expenses pay him exactly that amount. If this is done then TDS will not be deductible.
But keep that account seperate. Do not mix it in professional fees.
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