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Recruitment consultancy income

This query is : Resolved 

21 December 2011 Whether recruitment consultancy income is a professional income? TDS is deducted on services offered @ 10% being technical consultnacy services by our clients...

If this is considered as professional income the Audit is applicable and if considered as business income then audit is not applicable and also we can opt for section 44AD...

please guide...

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21 December 2011 According to me, it should be business income.

21 December 2011 "Recruiting agents" falls under the category of 'business' as per ICAI publication viz., Issues on Tax Audit.

21 December 2011 The income from recruitment services should be business income, so far my view is concerned only by virtue of deduction of tax at source is u/s 194J it does not become professional income.

So it should be reckoned as business income


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