Multiple section ender one invoice

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Gurusimha (Querist)
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07 June 2011 Dear Experts,

WE HAVE A INVOICE WITH BOTH PROFESSIONAL SERVICES AS WELL AS LABOUR SERVICES.

PLEASE ADVICE WHETHER WE HAVE TO DEDUCT TDS UNDER SEC 194J AND 194C SEPEARTELY OR UNDER 194J FOR THE WHOLE INVOICE VAULE.

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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07 June 2011 Dear Gurusimha. TDS is on Expense and you need to look nature of expense for which payment made, invoicing is the procedural aspect not principal aspect so you have to deduct u/s 194J as well as 194C separately

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Gurusimha

Gurusimha (Querist)
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07 June 2011 Dear Pankaj, Thanks for your reply.

But i have a circular from Direct Taxes Circular: No.720, DTD 30.08.1995 WHICH SAYS

Payment of any sum shall be liable for deduction of tax only under one section.

Please confirm

Pankaj Gandhi Jaiswal

Pankaj Gandhi Jaiswal (Expert)
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07 June 2011 Payment of any sum means one payment can not be covered under another section,means it covers a certain amount of payment....if an amount paid in lump sum for two payments you can consider this as a separate payment/sum for two nature of expenses and accordingly relevant section will be apply..payment is a convenience matter and mode of assessee

Gurusimha

Gurusimha (Querist)
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07 June 2011 Dear Pankaj,

I am really confused.
Can you please simplify the above reply.