Sarvesh Kumar Singh (Student CA Final (Articled Asst.)) (170 Points)
11 April 2012I want to know that whether services provided by 'PEST CONTROL (INDIA) PVT. LTD.' to a Hospital for AMC (Annual Maintenance Contract) of Integrated Mosquitoes Management Service comes under "Professional or Technical services" for the purpose of TDS or not ?
Kindly reply.
DIBYENDU
(SERVICE)
(266 Points)
Replied 11 April 2012
It will be added u/s 194C -payment made to contractor & sub contractor and deduct @ 2% TDS
sivakumar
(Asst Manager - F&A)
(324 Points)
Replied 12 April 2012
Yes it goes to under the head Contractor
Sarvesh Kumar Singh
(Student CA Final (Articled Asst.))
(170 Points)
Replied 12 April 2012
Thanks all of you for your answers but there is a doubt in my mind. kindly consider these points also while answering.
"The services provided by Pest Control of India Pvt. Ltd. includes Integrated Mosquitoes Management Service and Gold Seal Service which is generally only a techincally sound person can provide. These services are provided by the help of equipments & chemicals."
In my view due to use of technology and technicians, these services should come under technical services. Kindly advice me.
CA PRAVEEN SINGH
(MANAGER ACCOUNTS)
(2277 Points)
Replied 12 April 2012
yes...
TDS IS TO BE DEDUCTED U/S 194 C....
RETE 2%
Mihir Doshi
(B.Com, CA, CS, LLB)
(2187 Points)
Replied 12 April 2012
Dear,
Its a kind of AMC contract, It would require to deduct TDS in 194C @ 2% (Company).
Thanks
Mihir Doshi
CA Prakash Rai
(CA)
(129 Points)
Replied 12 April 2012
| Originally posted by : DIBYENDU | ||
 |
It will be added u/s 194C -payment made to contractor & sub contractor and deduct @ 2% TDS |
 |
merely use of complicated equipment and other specialists doesnt qualify this as professional and technical services. When deciding the nature of the contract you should look at it from the point of view of customer, as in, what outcome is he getting out of that contract. In your case the Hospital is using the services of "PEST CONTROL INDIA (P) LTD." only for the purpose of keeping its premises clean and hygenic. Howcome that amounts to technical services? If, just for example, Hospital is taking services of a particular professional surgeon for perfroming a complicated surgery, that will amount to professional & technical services.
Hope i have cleared my point.
Ritesh Jain
(CA, CS in Job)
(675 Points)
Replied 12 April 2012
"The services provided by Pest Control of India Pvt. Ltd. includes Integrated Mosquitoes Management Service and Gold Seal Service which is generally only a techincally sound person can provide. These services are provided by the help of equipments & chemicals."
Merely by acquiring knowledge/training/experience to use or handle a hi-tech machine or equipment doesnot tatamount to have a professional or specific skill as per 194J. e.g AMC for computer maintainence comes under 194C even in that case only a technically sound person can handle software/hardware problems. or say in case of chauffer driven Taxi contract ,in that case also a Driver(i.e who know how to drive)is having a specific knowledge to drive which also needs a training but that is not enough to categarise those payment under 194J.
Vinod Ram
(C A)
(165 Points)
Replied 12 April 2012
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Sarvesh Kumar Singh
(Student CA Final (Articled Asst.))
(170 Points)
Replied 12 April 2012
Thanks to all of you for your kind suggestions.
CAclubindia
