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Tds u/s 194c or 194J???

AHAMED. B (3 'C' - Final) (273 Points)

08 December 2009

Hi frenz..... AMC taken for computer services.. TDS if attracted to be deducted u/s 194c or 194J? My view is that its to be deducted u/s 194j as computer service is a technical service.. Pls share ur views.... Pls ans my other queries as well....

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7 Replies

CMA Ramesh Krishnan (Cost & Management Accountant) (71604 Points)
Replied 08 December 2009

It is based on the nature of service provided, Norma maintenance it will come under 94 C or providing any Professional service even given AMC contract it will attract 94J

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AHAMED. B (3 'C' - Final) (273 Points)
Replied 08 December 2009

Thanx Mr.Ramesh.... My questn is computer service is a technical service na??? Its not a prof service to make it a clear point... Since being technical service it shud attract tds u/s 194j as it is included in that sectn...

CMA Ramesh Krishnan (Cost & Management Accountant) (71604 Points)
Replied 08 December 2009

Dear Ahamed

I think, Normal computer service will not come under Technical service except specifically invoice says the professiona, technical or consultancy

AHAMED. B (3 'C' - Final) (273 Points)
Replied 08 December 2009

ok.... Thanx.....

Nikit Popli (Consultant - Tax & Regulatory Services) (24 Points)
Replied 08 December 2009

Clearly section 194J-as per sec 194j-" fees for technical services " shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;...i.e , "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".

It is to be noted tht it even includes lump sum payments...and moreover it is always suggested to deduct tds at higher rate in case of any contradictions to be on a safer side.

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CA. Anubhav Jaggi (CA) (104 Points)
Replied 09 December 2009

It should be 194C. Because it is not necessary that a person holding any technical qualification

can only undertake such types of contract. Even if I have some computer hardware and software knowledge, I can also undertake such AMC.

So, in ur case what is to be seen is the nature of service, which is a Contract.

LALITHA RAJAN (PARTNER) (22 Points)
Replied 09 December 2009

For Computer AMC tax to be deducted under section 194C.No expert knowledge is required for servicing the computer. any one with diploma in computer or any person with practical experience can do the job. It should be treated in the sameway with other AMC's like Air conditioner , Acquaguard, or any plant & machinery where TDS is deducted u/s 194C.

Lalitha rajan