03 May 2020
Dear Sir, We are paying 200 000 in a year to a freelancer for business promotion, Will there TDS applicable and under which section, Should we take as technical service or as contractor which will better?
05 May 2020
Section 194J Of Income Tax Act, 1961- According to Section 194J of Income Tax Act of 1961, an individual ought to deduct TDS at the rate of 10% when the following payment is made to an occupant, in a financial year (higher than Rs.30,000):
Amount charged as professional services fee or Non-compete fee according to the Income Tax Act of Section 28(VA) or Amount charged as technical service fee or Royalty.
05 May 2020
Without knowing the job, works or service how to You define it's u/s 194J...? Better to get back details from Querist after give solutions. It's better for understanding the query...
05 May 2020
Freelance if it is relates technical , royalty need to be deduct tds u/s 194j Where it's mere related advertising services than you can deduct 194c if it is commission for promoting businesses than tds applicable u/s 194 H
But nature of freelance services is important to consider applicable tds percentage.
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