Applicability of TDS on website development charges
This query is : Resolved
05 October 2009
Is TDS applicable on website development charges.
If yes under which section i.e 194C or 194J
Also the above charges are initial charges for having a new website of the client & not the AMC.....
If yes under which section i.e 194C or 194J
Also the above charges are initial charges for having a new website of the client & not the AMC.....
Shyam Lal Naik
(Expert)
05 October 2009
Both the sections merit equal consideration.
If it is a service contract, 194C is attracted. If it is construed as a rendering of technical service, 194J is attracted, being fee for technical service.
Fee is a consideration for advice. In this case there is no advice, rather carrying out the work itself. It appears to be contract for carrying out any work rather than mere technical advice. Hence section 194C is attracted.
More over, the term of the expense is Web Development charge and not web development fee.
However, let us seek more opinion.
If it is a service contract, 194C is attracted. If it is construed as a rendering of technical service, 194J is attracted, being fee for technical service.
Fee is a consideration for advice. In this case there is no advice, rather carrying out the work itself. It appears to be contract for carrying out any work rather than mere technical advice. Hence section 194C is attracted.
More over, the term of the expense is Web Development charge and not web development fee.
However, let us seek more opinion.
Shyam Lal Naik
(Expert)
05 October 2009
06 October 2009
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