94C and 94J

This query is : Resolved 

28 January 2009

Dear sir,
If a retired Conl. running a security and detective agency and makes two bills.
one for securit gaurds charges under contract with client and another against detective services.
Are TDS will be deducted on both bills under section 194C or
1. u/s 194C on bill of security gaurds charges
2. u/s 194J on bill of detective work done.
Please clear.

Ram Avtar Singh (Expert)
28 January 2009

Both are Under Sec.194C

CA Hemant T Dewani (Expert)
28 January 2009

if any sum paid to professional person when he/she give services to client then sec 194J is applicable

Any person, not being an Individual or a Hindu undivided family, who is responsible for paying to a resident any sum either by way of:-


Fees for professional services, or


Fees for technical services, or


Royalty, or


Any sum referred to in Section 28 (va), being any sum, whether received or receivable, in cash or kind, under an agreement for not carrying out any activity in relation to any business or not sharing any know-how, patent, copyright, trade-mark, license, franchise or any other business or commercial right of similar nature or information or technique likely to assist in the manufacture or processing of goods or provision for services.

Shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax on income comprised therein.



In case of an Individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified for tax audit under Section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section.


Fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".


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 notified by the Board for the purposes of section 44AA or of this section.
in my opnion tds is deducted under sec 194C

28 January 2009

Dear sirs,
Thank you very much for your reply.
Can you give me a list of professional persons as per Income Tax Act, if any.

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