Tds deduction u/s 194c or j

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Vishal (Querist)
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27 February 2014 hello, i am running manpower company recruiting senior level , junior, engineering and blue collar staff to render support service to the client under an agreement for provision of manpower of all levels. Please suggest under what category TDS would be deducted either 194J or 194C and why.

VIVEK BARANWAL online

VIVEK BARANWAL online

(Expert)
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27 February 2014 You are having an agreement with client than TDS U/S 194 c is applicable

Ganeshbabu K

Ganeshbabu K (Expert)
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27 February 2014 Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work.

But Payments to you are in the nature of payments for services rendered.if manpower supplied by you rendering services in professional expertise/capacity,Accordingly, provisions of section 194C shall not apply.The payment will, however, be subject to TDS under section 194J of the Act.

Mere because u have an agreement we cannot say 194C all time.
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VIVEK BARANWAL online

VIVEK BARANWAL online

(Expert)
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27 February 2014 Definition of Prof service u/s 194 J is as under

"professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified99 by the Board for the purposes of section 44AA or of this section;

But here you are providing manpower supply and having a contract / agreement between you and client for supply of manpower so 194 C is applicable.

But position is changed if technical service is directly provided by you. and blue collar staff is provided on behalf of you for completing any professional job, than 194 J is applicable

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