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Tds under which section

deepa (Accounts Manager) (75 Points)

14 January 2013

Hello Everyone,

I m working for an NGO. We are conducting a Market research on certain issues. So we hired a market research agency. Now such company has raised a invoice of 25% of the total contract price. What i want to ask is do i need to deduct TDS on it and Under which section? Please reply.

Thanks.......

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6 Replies

Ankit Mehra (Service) (176 Points)
Replied 14 January 2013

Section 194C (if an individual/HUF then 1% and if others the 2%)

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CA Prashant Gupta (DGM (F & A)) (14068 Points)
Replied 14 January 2013

market reserach is a professional services so u need to deduct TDS u/s 194 J.

it is not to consider that you have a contract with them.

it is professional service then 194 J is applicable

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Rahul Sharma (Be Always Positive) (1603 Points)
Replied 14 January 2013

if market research services are on contract basis than 194C othervise 194J in professional services. noramally under section 194J.if it is on contract basis than specified in the agreement.

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CA Gnanika (CA ) (485 Points)
Replied 14 January 2013

Agreed with CA Rahul Sharma.

Generally Section 194J is applicable., but if specified in the agreement as contract, then section 194C can be applied.

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CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 14 January 2013


	if market research services are on contract basis than 194C othervise 194J in professional services. noramally under section 194J.if it is on contract basis than specified in the agreement.