TDS

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This query is : Resolved

Amit Mehta (Querist)

30 June 2010 hi,
I have query regarding TDS.

There is one party providing moulds to my auditee company on the basis of specification provided by my auditee company which also contains the logo to be provided on the same.

The party is providing invoice as sales as all rawmaterial, labour & all necessary other things are of the party's itself.

The case is that my company is dudcting TDS @ 10% u/s 194J as a professoional fees as CONTENDED BY INCOME TAX OFFICER in its PREVIOUS SURVEY. and now the DEDUCTEE PARTY is OBJECTIONG on TDS as its highlighting the amended provision of SEC 194C by saying that its mere a contract of sale.

So , whether TDS is to be deducted by my client or what?

I personaly viewd as TDS shouldnt be deducted as deductee party's containtion is correct. but still to resolve my dilema, I expect views from Experts.

Thanx..
Amit

Shyam Lal Naik

Shyam Lal Naik (Expert)

30 June 2010 The seller's view is cottect.

How can it be covered under 194J. The payment is not fee by any strech of imagination.

Amit Mehta

Amit Mehta (Querist)

30 June 2010 that is what I viewd, but that was Income Tax Department has contended in its Survey & oredered specifically for the same. that is why my party is getting confusion. and i seek experts' opinion.

thanz anyways.

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