Tds u/s 194j

8885 views 21 replies

Jakey Rohira

student

95 Points Joined May 2011

If a Co. pays professional fees of Rs 20000 to Mr.X and 25000 for technical charges. Is co liable to deduct TDS u/s 194J..??

Replies (21)

Sandeep Dharar

Business

18797 Points Joined January 2014

Yes if paid to same person in the same financial year and if amount exceeds Rs. 30K then liable to TDS u/s 194J @ 10%.

CA Saloni

Manager-Accounts & GST Consultant

5124 Points Joined July 2014

No,threshold limit of 30,000/- applies individually to the items specified u/s 194J.Profeesional fees & technical fees are 2 separate items under section 194J.....

Arshad

Article

62 Points Joined October 2013

If single payment is more than 30k or total payment during the financial year exceeds rs 75k..

ranjan

23 Points Joined April 2013

Yes arshad is right. Limit shown individually.

Santosh Shetty

IPCC Asst Manager

200 Points Joined February 2008

what sandeep dharar said is correct

Santosh Shetty

IPCC Asst Manager

200 Points Joined February 2008

Dear arshad & ranjit limit of 75 k not for 94j. Its for 94c only. Meanwhile professional & technical services both falls under 94j. So tds shall be applicable on 45k @ 10%

Jakey Rohira

student

95 Points Joined May 2011

Friends both payments are to same person. I want to make clear one doubt, that wether limit of 30k is applicable on individual payment or in aggregate..??

Anant Gadge

Senior Asst. Manager

21 Points Joined August 2014

Dear Jakey According to section 194J under TDS it clearly says that a single payment or credit exceeds of Rs.30k or aggregate payment exceeds 30k during the same FY........then the deductor must be deduct the Tds @ 10% & in absence of PAN the TDS @ 20% should be deducted..............

Sahil Bhatia

Practicing Chartered Accountant

290 Points Joined July 2009

No threshold of 75000 available here and saloni is correct in her view that technical and professional are two seperate things to be accessed individually. And hence the limit of 30000 will be seen for each payment or bill whichever is earlier, regardless of the fact of the person receiving payment for the above case.

Jakey Rohira

student

95 Points Joined May 2011

Dear all, So fnly co is nt liable to desduct tds. Thanks to Saloni and Sahil.

Sandeep Dharar

Business

18797 Points Joined January 2014

I wana ask Mr Sahil Bhatia, Mr Arshad and Mr Rajan to share the link or the document or anything where it says that 75k is applicable on 194J in agreegate or whatever. And where it is written that it is on single payment.

It is taken as aggregate. Technical charges is also regarded as Professional charges. Coz, there is no contrach as such mentioned. And Profession dosen't mean any degree or like that.

nitin suvarna

C.A FINAL

828 Points Joined July 2010

Here sahil is correct the payment of each service shall be considered individually

Arshad

Article

62 Points Joined October 2013

I m really sorry on my last post. correct answer is,if there is any transaction during the financial year exceeds rs 30k then all the payments will be tds deductible.