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Tds on recruitment charges

Rajeshwari (Assisstant Accountant) (40 Points)

19 July 2016

Sir / Madam, We have a vendor who provide recruitment services on a monthly basis, kindly let me know the percentage of tds to be deducted on such invoices, will they come under professional service provider or contractor. Thanks & regards

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6 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 19 July 2016

Professional charges u/s 194J @ 10% if the amount exceeds 30,000

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CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 19 July 2016

i guess he is just a man power contractor, and on the basis of companies contract he is doing it, i opine that he has to deducted 2% or 1% on the basis of his staus (individual,company etc)

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Rajeshwari (Assisstant Accountant) (40 Points)
Replied 19 July 2016

Thank you so much for the quick reply, will be any difference in % of tds if we have recruitment agreement for the same.

CA Srujann kumar Reddy (Asst Manager(Internal audit)) (1679 Points)
Replied 19 July 2016

no.... change will be there.

and recruitment is not a professional service, choose 194C...

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 19 July 2016

If one goes by circular no.715 dated 8-8-1995 (question no.12), 194J would be applicable (not 194C)

https://www.incometaxindia.gov.in/Communications/Circular/910110000000000611.htm

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chandra sekar (Manager-Accounts) (387 Points)
Replied 21 July 2016

recuit,ement goes at par with security services (manpower concept), where the TDS is being deducted under 194 C only. So there is no question of 194 J here. One more thing is the agency not providing any professional service, so 194 J, is ruled out.