Tds applicability
This query is : Resolved
16 June 2015
there is participation of our people in various conference organized by pvt entity and the objective of this participation is meeting senior people of various companies and develop business contacts.
TDS is applicable for the above and under which section? pl. clarify
TDS is applicable for the above and under which section? pl. clarify
16 June 2015
When attending a conference,which is not specially organized for payer, and is open to any participant, there is no contract for carrying out any work or for rendering professional or technical services. Therefore, TDS provisions should not apply. However, if a professional or technical person organize conference specially for client to impart eduction and training to clients employees/ associates, then there can be either payment for a 'works contract' or 'fees for professional or technical services' depending on nature of service. Even if some other persons are allowed to participate, that may not change the nature.
16 June 2015
if your are organize the seminar etc for technical service and making payment to the speaker then you have to make deduction of u/s 194J. and remaining exp to be deduct u/s 194C.
16 June 2015
its business conference arranged by some another organisation where company took part and send its representatives mainly with an intention to develop business contacts and paid the amount for attending such conference.
in light of the above explanation please clarify the applicability of TDS and under which section
in light of the above explanation please clarify the applicability of TDS and under which section
27 July 2025
Great question — and a very practical scenario.
You're asking whether **TDS is applicable** on payments made for **participation in a business conference** organized by a **private entity**, where your representatives attend to **network and develop business contacts**.
---
## ✅ Short Answer:
* **Yes, TDS is applicable**, but **under Section 194C** (not 194J), **provided** it is a **contractual payment for organizing the event** (not for professional/technical services).
---
## 🔍 Detailed Analysis:
### 🎯 Nature of the Payment:
* You're **not hiring a speaker** or engaging a professional directly.
* You're simply **paying a participation fee** to attend a **business networking or marketing event** organized by another company.
* The **objective** is business development, **not receipt of technical or professional services**.
### 🔹 This is **not**:
* A **fee for technical services** (so **Section 194J does not apply**).
* A **royalty**, commission, or professional contract.
### ✅ This **is**:
* A **payment under a contract** for event organization/participation.
* Therefore, **Section 194C** applies.
---
## 📘 Applicable TDS Section:
| Section | Applies To | Rate | Threshold |
| -------- | ---------------------------------------------------------------------------------- | -------------------------------- | ------------------------------------------------ |
| **194C** | Contracts for carrying out any work (including event management, conference, etc.) | 1% (individual/HUF), 2% (others) | ₹30,000 per contract or ₹1,00,000 aggregate p.a. |
| **194J** | Fees for professional or technical services (not applicable here) | 10% | ₹30,000 per annum |
---
## ✅ TDS Applicability in Your Case:
| Situation | TDS Applicability | Section |
| ------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | ---------------- |
| You pay a fee to attend a business event/seminar organized by a private company (for networking, not technical training) | **Yes, TDS applicable if payment exceeds threshold** | **Section 194C** |
| You pay a speaker directly or organizer for **technical or professional services** (e.g., training, consulting) | Yes | **Section 194J** |
---
## 📌 Final Conclusion:
* In your case, **TDS under Section 194C applies**, if:
* The **payment exceeds ₹30,000** in a single invoice or ₹1,00,000 aggregate in the financial year, **and**
* The payee is **not exempt from TDS** (e.g., government bodies or certain notified institutions).
---
Let me know the **invoice amount** and **payee type** (company, individual, etc.), and I can confirm the **exact rate** and **entry format** if needed.
You're asking whether **TDS is applicable** on payments made for **participation in a business conference** organized by a **private entity**, where your representatives attend to **network and develop business contacts**.
---
## ✅ Short Answer:
* **Yes, TDS is applicable**, but **under Section 194C** (not 194J), **provided** it is a **contractual payment for organizing the event** (not for professional/technical services).
---
## 🔍 Detailed Analysis:
### 🎯 Nature of the Payment:
* You're **not hiring a speaker** or engaging a professional directly.
* You're simply **paying a participation fee** to attend a **business networking or marketing event** organized by another company.
* The **objective** is business development, **not receipt of technical or professional services**.
### 🔹 This is **not**:
* A **fee for technical services** (so **Section 194J does not apply**).
* A **royalty**, commission, or professional contract.
### ✅ This **is**:
* A **payment under a contract** for event organization/participation.
* Therefore, **Section 194C** applies.
---
## 📘 Applicable TDS Section:
| Section | Applies To | Rate | Threshold |
| -------- | ---------------------------------------------------------------------------------- | -------------------------------- | ------------------------------------------------ |
| **194C** | Contracts for carrying out any work (including event management, conference, etc.) | 1% (individual/HUF), 2% (others) | ₹30,000 per contract or ₹1,00,000 aggregate p.a. |
| **194J** | Fees for professional or technical services (not applicable here) | 10% | ₹30,000 per annum |
---
## ✅ TDS Applicability in Your Case:
| Situation | TDS Applicability | Section |
| ------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------------------- | ---------------- |
| You pay a fee to attend a business event/seminar organized by a private company (for networking, not technical training) | **Yes, TDS applicable if payment exceeds threshold** | **Section 194C** |
| You pay a speaker directly or organizer for **technical or professional services** (e.g., training, consulting) | Yes | **Section 194J** |
---
## 📌 Final Conclusion:
* In your case, **TDS under Section 194C applies**, if:
* The **payment exceeds ₹30,000** in a single invoice or ₹1,00,000 aggregate in the financial year, **and**
* The payee is **not exempt from TDS** (e.g., government bodies or certain notified institutions).
---
Let me know the **invoice amount** and **payee type** (company, individual, etc.), and I can confirm the **exact rate** and **entry format** if needed.
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