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Discussion > Income Tax > TDS >

TDS as 194J or 194C

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[ Scorecard : 107]
Posted On 04 December 2007 at 10:47 Report Abuse

Dear Friends,

A Contract is given to a Company whose only works is Testing. The bills are raised as  testing charges.

So the company has to deduct TDS as 194 J ( as the testing charges are in nature of profesional fees Since the company has no other kind of income) or 194 C ( as the company has given him the contract )

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[ Scorecard : 99]
Posted On 04 December 2007 at 10:58

TDS should be deducted under sec194J as 194C does not govern the deduction of tax at source from payments of fees towards Professional or technical services(In SRF Finance Ltd.v.CBDT)

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[ Scorecard : 305]
Posted On 04 December 2007 at 11:17

Testing charges will be covered under section 194J as technical services.

CA. O.P. Agarwalla

[ Scorecard : 2571]
Posted On 04 December 2007 at 11:33

I think, testing work falls under "technical services". Section 194J will apply.

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suman nvss y
article assitant

[ Scorecard : 147]
Posted On 04 December 2007 at 13:16

testing charges are not professional charges. tds u/s194 is correct for this charges

Vk Duggal

[ Scorecard : 320]
Posted On 04 December 2007 at 15:13

Testing charges are for the fee for technical services and TDS should be 10% plus surcharge+cess

Posted On 05 December 2007 at 09:58

Testing does not involve carrying out any work in the nature of physical activities and handing over the physical possession of the works or like carriage of goods or contract of advertising or any contract like a courier company .Testing involves,examination and expressing an opinion on the subject matter and may involve,if sought for,giving an advise on the findings of the test results.For example soil testing,water testing etc which is a Technical work.The meaning of the word contract used by the queriest is in the sense of an agreement and not to be construed as a "Contract" which is mentioned in Section 194C.Hence TDS will be under section 194J.

Posted On 05 December 2007 at 17:33

tds should be deducted under 194 j only since testing charges are technical services under 194 j

Posted On 06 December 2007 at 18:07

since testing needs some skills it will attract tds on profession which no other person can do

Posted On 06 December 2007 at 18:24

tds should be deducted u/s 194j as technical fees

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