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.....
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.
05 October 2009
06 October 2009
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
