TDS 194C or 194J ?

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This discussion explores whether TDS on payments made by a government company to a CA firm for providing 20 Chartered Accountants on a contractual basis falls under Section 194C or 194J. The CAs work under the government company's officers, and the CA firm pays them after deducting its margin. The core question is whether this constitutes professional services (194J) or skilled manpower supply (194C).

GOPAL MAHESHWARI

GOPAL MAHESHWARI (Querist)
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12 June 2020 Which TDS section applicable on below Service ?

a CA Firm providing 20 Chartered Accountant on contractual basis to a Govt Company. These 20 CAs working under/with the Officers of Govt Co. and reporting them.

Is Monthly Payment to CA firm for against work of 20 CAs attract which TDS Section - 194C, 194 J or other ?

GOPAL MAHESHWARI

GOPAL MAHESHWARI (Querist)
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12 June 2020 Govt. Co. pay the Contractual amount to CA Firm and then CA Firm after deducting Margin/profit, pay the Prefix Amount to All 20 CAs.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 June 2020 Professional services rendered so 10% TDS applicable under section 194J.

GOPAL MAHESHWARI

GOPAL MAHESHWARI (Querist)
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13 June 2020 The CA firm providing only CAs . No Audit , No Accounting, No other services provided to Govt Co.. Reporting of these CAs is directly to Govt Co./org. Can still it covered under 194J? Can it covered under Skilled Manpower Service - 194 C ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 June 2020 In such a case it's manpower supply 194C TDS applicable.

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