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Tds u/s 194j

Jakey Rohira (student) (95 Points)

29 August 2014

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..??

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21 Replies

Sandeep Dharar (Business ) (18797 Points)
Replied 29 August 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%.

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CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 29 August 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)
Replied 29 August 2014

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

ranjan (Ca) (23 Points)
Replied 29 August 2014

Yes arshad is right. Limit shown individually.

Santosh Shetty (IPCC, Asst Manager) (200 Points)
Replied 29 August 2014

what sandeep dharar said is correct

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Santosh Shetty (IPCC, Asst Manager) (200 Points)
Replied 29 August 2014

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)
Replied 29 August 2014

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)
Replied 29 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)
Replied 30 August 2014

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)
Replied 30 August 2014

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

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Sandeep Dharar (Business ) (18797 Points)
Replied 30 August 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)
Replied 30 August 2014

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

Arshad (Article) (62 Points)
Replied 30 August 2014

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.