Faisal Khan (Chartered Accountant) (77 Points)
06 August 2010ABC limited provides computer maintenance service to XYZ limited and charges AMC (annual maint. charges) every year.
now the question is - whether XYZ ltd. will deduct the TDS u/s 194C (because there is a contractual agreement between them), or u/s 194J (because it is a professional / technical service) ?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 06 August 2010
Maintenance contracts - Routine maintenance contracts including supply of spares would be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source—Circular : No. 715, dated 8-8-1995.
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 06 August 2010
under section 194C.
regards,
Manoj
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