01 January 2011
The rate of deduction will be 2% for others and 1% for individuals and HUF. It may be noted that Explanation to section 194J of the income tax act sepcifies a profession as Legal, Medical, Engineering, Architectural or such other profession as may be notified for the purpose of maintainance of books of accounts U/S 44AA. The professions list is exhaustive so all those which dont fall in the list are not covered u/s 195 and will be governed by 194C
01 January 2011
Maintenance contracts - Routine maintenance contracts including supply of spares would be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source—Circular : No. 715, dated 8-8-1995.
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