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TDS Rate

CA. Anshul Bajaj (Taxation Head) (173 Points)

07 January 2010

Dear Friends,

One of our Client in Travel Business makes the Payment to theTour Giude For His Services Under What Section TDS TO be deducted i.e in 194 J or 194C

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10 Replies

Amir (Learner) (4016 Points)
Replied 07 January 2010

Dear Ansul,

Services of Guide can never be categorised as a Professional Service..

It will attract TDS u/s 194 C...

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CA. Anshul Bajaj (Taxation Head) (173 Points)
Replied 07 January 2010

R u sure Sir??? as i m sitting at client Office and need to inform my Boss about it...so i need to besure about it first!!!

Amir (Learner) (4016 Points)
Replied 07 January 2010

DEFINATELY BROTHER,

Professional is something which involves use of some specialized knowledge or skill...Further such knowledge or skill should be acquired with some education / training...

Sevices of Guide cannot be categorized in that...

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Vijendra Karanjavkar (Accountant) (25 Points)
Replied 07 January 2010

Our organization had arranged one exhinition where all vintage cars were kept for diplay publically. We had photo contest and in that we are offering prices as under

1st Price 2000/-, 2nd price 1500/- and third price 1500/-, however, want to know whether this payment attracts TDS, if so at what rate. Please revert.

Amir (Learner) (4016 Points)
Replied 07 January 2010

DEAR VIJENDRA,

As per sec 194 B if "PRIZE AMOUNT DOES NOT EXCEED Rs. 5,000(per winner) then NO TDS IS TO BE DEDUCTED..

OTHERWISE TDS IS TO BE DEDUCTED @ 30% ON TH TOTAL PRIZE WHERE IT EXCEEDS Rs. 5,000(per winner)

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sriram (CA) (281 Points)
Replied 07 January 2010

yes i do accept wit Mr.Amir

CA. Anshul Bajaj (Taxation Head) (173 Points)
Replied 07 January 2010

Thanks Sir!

Kasilinga Selvan (Article Assistant) (24 Points)
Replied 07 January 2010

IS THAT TOURIST GUIDE IS NOT A PROFESSIONL..

tom (x) (44 Points)
Replied 07 January 2010

Mr.Anshul, TDS u/s 194J applies only for those professional services as defined in explanation (a) to sec194J. tds is applicable to services notified by govt. under sec.44AA also.Tour guide service is not specified there in. So no tds u/s 194J. 194 C is applicable here at the new rates.