Rate of tds dedcution for rendering of it related services

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Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 Dear All

Pls let me know the Rate of TDS dedcution for Rendering of IT related Services hired on contract basis

The person is claiming for 1% Deduction , to my instinct it should be 10%,

since the Services rendered by him comes under Professional services,

Pls reply

Also provide any other base for objection for 1% Deduction

Regards

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 August 2011 Notification NO SO385(E) dated 4-5-2001.
This notification has been under section 44AA to notify the Information Technology as a Profession.
.

Further, Section 194J requires, TDS to be deducted @ 10% on professional services.
In this section Explanation- (a)covers the notified professions also.

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 Thanks a Lot sir,

i think this will be sufficient..

Once again many thanks for the reply

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