LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

194j

01 July 2016

if any person pay any fees of 29000 for tax audit and legal consultancy separately for each service to one person will be liable for tds u/s 194J

Reply
Follow
Share

4 Replies

CA FARHAT MIYAN (CA) (40 Points)
Replied 01 July 2016

As per section 194 j TDS has to be deducted.

Below is the definition of Professional Services-

"professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified36 by the Board for the purposes of section 44AA or of this section;

As section emphasises on services it means it includes all the services provided by a person whether it is legal Consulatancy or profession of accountancy.

CA Harshal Totla (Chartered Accountant) (2229 Points)
Replied 01 July 2016

Mr.Farhat is right. All such services provided by such professional to assessee shall be taken into account for the purpose of section 194J

Akshay (Senior Assistant) (444 Points)
Replied 01 July 2016

In simple terms section 194J says amount limit has to be reckoned per person and not per service. Hence 29000 for tax audit and legal consultancy separately for each service, if paid to a single person, total would be Rs. 58,000 and accordingly TDS @ 10% has to be deducted.

1 Like

sankar (articled trainee) (247 Points)
Replied 29 September 2016

Good morning Sir,

i have small doubt about if a person accounting services done by the mr.x is paid amount by a way of chq 30000 is wil be tds attracted or not pls kindly advise me