ayesha (mcom) (1185 Points)
21 April 20151) if an huf provides professional services to our company amounting to rs 100,000 per month,then we have to deduct 10 % tds on professional bill. do we have to take care of 250,000 rupees exemption limit or just deduct 10 % tds on every bill .
2)if a bill has service tax on it do we have to deduct tds on that bill oly for the reason that service tax is charged.
CA HAYEDAR SHAIKH
(Practice )
(622 Points)
Replied 21 April 2015
Dear Aayesha,
Section 194J states that if fees for professional or technical work is at Rs. 30000/- or more than 30000/- then you need to deduct TDS @ 10%.
You do not need to think about the basic exemption limit.
In the second case you also need to deduct the TDS. See the attached file for ready reference.
moulali
(student)
(735 Points)
Replied 22 April 2015
Naveen Rishi Kumar
(Director)
(53 Points)
Replied 22 April 2015
I think that the upmost question is whether a HUF can provide professional services? Do we have any decided case laws in support?
Naveen Rishi
CAclubindia
