salary or professional fee

This query is : Resolved

Dhanraj (Querist)
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03 September 2009 Dear sir

An accountant comes on sundays in a propreitorship concern to make its accounts. Whether payment to him will be in nature of salary or profeesional fee for the purpose of TDS provisions?

Thanks

Nischint Kumar Somani

Nischint Kumar Somani (Expert)
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03 September 2009 in my opinion, u can not make payment under professional fees, as the definition of profession does not includes it, further salary should be made to a person who is in regular employment there..

in my views TDS should be deducted under 194C

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
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03 September 2009 agree with Expert

chetan soni

chetan soni (Expert)
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03 September 2009 Very complicated reply,

We can even pay to employee if he works on weekly basis as per the company policy. Now in your case you have contract with accountant to finish the work in given timeframe. Now this will be covered as professional & technical consultancy part. This will be covered u/s 194J as professional fees paid.

For accounting head purpose you can dr. this as "accounting Work" in profit & loss account.