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rajesh (Querist)

20 November 2009 One of our client has given advance of rs. 200000/- to architecht. after some months when work is over architech says that work is over and total expenses is rs. 200000/-. However architecht disagree when tax is to be deducted and 10%. I want to know whether we can paid tax ion behalf of him ? whether then we required to issue form 16 a to them and whether we can treat expenses of rs. 200000+ tax?
Please reply.
Thanks

C.A.Amitabh Gupta

C.A.Amitabh Gupta (Expert)

20 November 2009 In your case, You will have to deduct TDS @10 % as per the provisions of section 194J ( since the amount paid is to architect )on the total amount of professional fee paid and not on the amount of any expenses related to some construction/building etc which many been incurred by the architect on your behalf and for which he has given you the bills etc.After deduction and deposit of the said TDS , you are reuire to issue the architect Form 16A and the architect will be paid only the balance amount i.e. Rs.200000-Amount of TDS.

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