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
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.
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)
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.
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