Tds applicability

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preeti (Querist)

23 September 2012
Hello,

Tds under which section will be applicable for below case 94J or 94C?

Two comapnies are there ABC Ltd & XYZ Ltd, ABC Ltd has 400 employees and XYZ has 1 employee as General Manager, who works for ABC Ltd being employee of XYZ Ltd.

For this arrangement both the compnies has mutual contract betwwen, every month ABC Ltd gets Debit note/ Invoice with Service Tax for his Salary from XYZ Ltd .

Please advice under which section with reason tds is to be deducted.

regards,
preeti

Amol S Joglekar

Amol S Joglekar (Expert)

23 September 2012 The wording of the contract will throw light on the issue. If it is a consultancy contract, 194J will come into play. (This is normally the case) On the other hand, the contract is for some deliverables... which is normally the case in case of GPS(Global positioning system) or KPO (konwledge process outsourcing)kind of companies. In that case 194C will come into play.

CA.Vinita Gupta

CA.Vinita Gupta (Expert)

23 September 2012 194J Tds on Professional fees @10% is applicable

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preeti

preeti (Querist)

29 September 2012
But if you see in this case it is a reimbursement of expense for Comapny XYZ. Ltd and on reimbursement there is no tds deduction.

Please advice.

Amol S Joglekar

Amol S Joglekar (Expert)

30 September 2012 Sorry to understand this as REIMBURSEMENT when you say that both the companies are having mutual CONTRACT. It can not be said to be reimbursement.

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