If tds us 194c is applicable for project fund advance

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mahadebmandal (Querist)
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11 July 2013 I am working in a company wherin we are engaged in project management consultant for different awarder. We are managing the client's fund for the project. The project fund is kept in a separate account till the project is over and any interest earned is credited to the fund. We are eligible for project management consultancy fees of 7% of the project cost plus service tax. My question is if client or awarder has to deduct tax u/s 194c of income tax 1961 on the project fund released to us. Experts may reply to this

Hemant Kumar

Hemant Kumar (Expert)
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11 July 2013 You are providing the Project Management consultancy service to your clients. This service is Professional Service not a contract. Hence, TDS Should be Deducted 10% u/s. 194J. This service is not under 194C.

CA Kumar Mukesh

CA Kumar Mukesh (Expert)
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11 July 2013
Agree with HEMANT, the service provided by your company is can be said technical or professional services & these types of services covered under section 194J

& section 194J requires to deduct TDS @ 10% including service tax (if any)

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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11 July 2013 Deduct TDS under sec 194J @10%

mahadebmandal

mahadebmandal (Querist)
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17 July 2013 I got 2 reply but not satisfied. I believe experts have given opinion on tds applicable on our project management consultancy fee. I know on the same tds @ 10% is applicable including service tax u/s 194j. My query is whether the project fund released for paying the contractor's running bills is attracted to TDS u/s 194c like when we are paying to contractor we are deducting TDS u/s 194c.