For tds

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SURENDRA TALESARA (Querist)
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26 November 2013 agar company, machines ke inspection ke liye inspection charges pay krti hai, kya tds deduct kiya jana chahiye? and payee ko iske liye service tax pay kiya to uski input milegi?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 November 2013 on inspection charges no tds to be deducted.

input available.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 November 2013 Inspection charges paid are in the nature of professional services and TDS @ 10% is applicable when the total payment (with Service Tax)exceeds Rs 30000. Section 194J.
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SURENDRA TALESARA

SURENDRA TALESARA (Querist)
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26 November 2013 can we treat inspection charges as a commision because its paid to supplier of machines

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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26 November 2013 It is not a commision but charges paid for providing service and there is no element of agency business nor there is principle-agent relationship...hence cannot treat inspection charges as commision.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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26 November 2013 The question arises here is why the charges has been paid to that particular company or person ?
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There must be some thing special. That makes the inspection, a professional event performed by a technical professional. 194J
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Further, commission theory also attract TDS. It is rightly said by the expert- Mr Sampat, that the same can not be termed as commission.
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So one 194J is the most suitable section in this case.
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ACS Gaurav Jain

ACS Gaurav Jain (Expert)
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27 November 2013 Surendra bhai offcourse yar 194 J. Its professional service. Provided for inspection of machinery. Machinery purchase under agggrement that thay will provide inspection service after delivering the machine

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