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

Individual Professional Fees - Tds

Bimal Mehta (Senior Accountant & finance managerial) (180 Points)

18 October 2010

Individual person If Pay Rs.2,00,000/- As a Professional Fees to An another INDIVIDUAL .

Will there be any TDS to be Deducted ?

Here both the party are an INDIVIDUAL PERSON .

Thanks

Reply
Follow
Share

3 Replies

karan challani (article) (82 Points)
Replied 18 October 2010

if it is for personal use then no TDS has to be deduted.

If the person who is paying the fee is covered under section 44AB i.e he is specified under Tax audit then TDS has to be deducted

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 18 October 2010

Dear Bimal,

In case where an individual/HUF is making payment of any professional fees, that is exclusively for his personal purposes, TDS need not be deducted. This exemption is available only for PROFESSIONAL FEES. It does not apply to FEE FOR TECHNICAL SERVICE, ROYALTY AND NON-COMPETE FEE REFERRED U/S.28(VA). It applies to an individual or HUF only when the payers gross turnover exceeds the limits prescribed u/s.44AB in the immediately preceding year