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Clarification on HR Services Invoice and Tax Applicability

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This query is : Resolved

Shafiya Kulsum (Querist)
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21 August 2024 Dear Sir,

We are seeking your assistance regarding the HR services we are availing. We have received an invoice that includes the following details:

- Description: Manpower Supply Services(Salary)
- Two separate columns for:
1. Salary Amount
2. Service Charges

Could you please help us determine which TDS applies to this invoice? Additionally, we would appreciate your guidance on how to identify whether this expense falls under Section 94C or Section 94J of the tax regulations.

Thank you for your prompt attention to this matter.

Best regards,
Shafiya Kulsum

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 August 2024 Yes, TDS applicable if threshold of one time payment exceeds 30,000 and annual payment exceeds 1 lac.
Section 194c TDS applicable as it's a contractual service provided.

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