Tds of recruitment company u/s 194c or j

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SANJEEV KR GUPTA (Querist)
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12 January 2015 I got a bill of recruitment company bill giving employees for senior management to us. They r our employees now. My query is that under which sec. I should deduct tds. thanks in advance

CA. Anoop Bhatia

CA. Anoop Bhatia (Expert)
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12 January 2015 If fees is payable for helping in recruitment the TDS provisions as per section 194C should be applicable.

This kind of service generally does not fall into the ambit of section 194J.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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12 January 2015 Beg to differ on this issue. TDS required to be deducted from recruitment agencies u/s 194J.

Please refer Circular No. 715 Dated 08.08.1995 from link given below:

http://www.incometaxindiapr.gov.in/incometaxindiacr/contents/CBDTFiles/Circulars/CBDTLaws/HTMLFiles/sec194c_715_95.htm

See answer to question no 12 which clearly says "Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payment to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act."