Payment for computer maintenance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2015 Dear all
the company is likely to pay RS. 35000 for computer repair & maintenance service. plz let me know whether TDS is to be made on this transaction or not if yer which section will attract........

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 April 2015 TDS to be deducted u/s 194C.
Rate: Individual/HUF @1%
Others @2%
No PAN 20%.

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2015 But sir. i think no tds is applicable on technical service

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 April 2015 It is a Repair & Maintenance contract hence section 194C attracted. Technical service attract Section 194J.

CA Kanj Goel

CA Kanj Goel (Expert)
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04 April 2015 It is not a texhnical service as defined in 194j. It is like annual maintenance xontract cover under 194c and required to deduct tds @ 1 or 2 % as referred by sanhay if single bill is exceeding 30000

Kaushik Joshi

Kaushik Joshi (Expert)
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06 April 2015 Dear Anonymous,
If it's an AMC, i'd suggest you to deduct tax u/s 194J. There have been many instances where tax authorities claimed it to be a technical service u/s 194J.