TDS on Participation fees

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Anshu (Querist)
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17 May 2011 A trust gives some kind of training to the employees of its members by hiring professionals. members pay participation fees to trust.
so my question is whether tds is deductible on such fees and if deductible then under section 194C or 194J.
please answers....

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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17 May 2011 In my view TDS is not required to be deducted on this participation fees. It is just like a seminar and therefore TDS provision not attracted. View of other experts envisaged.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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17 May 2011 Members' employees are get trained by the trust. Question of TDS arises at two places.
1. When the establishments of the members make payment to the trust.
2. When the trust makes payments to the professional trainers.

In the absence of a contract for doing any work 194C will not be applicable in both the situations.
However, Section 194J covers such payments which are exceeding Rs 30000/-.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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17 May 2011 Paras Sir please tell under which category it will fall as i am little confused regarding its applicability.

Professional Services: Areas covered

Legal Profession
Medical Profession
Engineering
Architect
Chartered Accountants
Technical Consultancy
Interior Decoration
Advertising
Authorised Representatives other than employee of the person represented. Authorised Representative does not mean a chartered accountant or an Advocate. However, payments to them are also subject to tax deduction.
Film artistes including actor, cameraman, director, music director, art director, dance director, editor, singer, lyricist, story writer, screenplay writer, dialogue writer, dress designer.
Company Secretary
Profession of Information Technology.

Technical Services: Areas Covered

Rendering of managerial services.
Rendering of technical services.
Rendering of consultancy services.

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