TDS on Sample Testing Fees?
This query is : Resolved
CA Parag Jani
(Querist)
25 October 2010
hello
is the payment towards sample testing fees paid to public ltd. company covered u/s 194-J being professional or technical service? Amount is Rs.22000 single bill paid before 1st July 2010. Advise TDS be deducted or not & at what rate?
is the payment towards sample testing fees paid to public ltd. company covered u/s 194-J being professional or technical service? Amount is Rs.22000 single bill paid before 1st July 2010. Advise TDS be deducted or not & at what rate?
CA Navin Jain
(Expert)
25 October 2010
tds would be deducted @ 10%
taxindiaconnect
(Expert)
25 October 2010
Sample testing persay is not covered under section 194J. Please share more details of sample such as what sammple, what work done on it and does it an engineering or medical sample of something else.
CA Parag Jani
(Querist)
25 October 2010
Sample in this case is shipping machinary. The assessee is a trader in shipping machinaries & the work carried out is of certifying the quality of the whole lot of machinary.
25 October 2010
Since the amount is less than thity thousand , TDS will not be applicable.
CA Parag Jani
(Querist)
26 October 2010
To Shailesh:
Credit to A/c & Payment to party has been made BEFORE 01ST JULY 2010. So I think Rs.20000 limit applies for 194-J.
Credit to A/c & Payment to party has been made BEFORE 01ST JULY 2010. So I think Rs.20000 limit applies for 194-J.
27 July 2025
Here’s a clear explanation about **TDS on Sample Testing Fees**, based on your conversation:
---
### Key Points:
1. **Nature of Payment:**
* Payment is for **sample testing of shipping machinery**.
* The work involves **certifying the quality** of machinery.
* This can be considered as **technical or professional service**.
2. **Which TDS Section Applies?**
* **Section 194J** covers payment for **professional services, technical services, consultancy, and certification services**.
* Since sample testing involves **certification of quality**, it likely falls under **technical/professional services**.
3. **Threshold Limit for TDS Deduction (Before 1st July 2010):**
* For payments under Section 194J, **TDS is deductible if the amount exceeds Rs. 20,000** in a financial year.
* Your payment is Rs. 22,000 (single bill), so TDS is applicable.
4. **Rate of TDS Deduction:**
* The applicable rate before 1st July 2010 under Section 194J was **10%**.
* Hence, TDS should be deducted @ 10% on Rs. 22,000.
---
### Conclusion:
* Since the payment of Rs. 22,000 (single bill) was made **before 1st July 2010**, and it is for **technical/professional service (sample testing & certification)**,
* **TDS @ 10% under Section 194J is applicable**.
---
If you want, I can help with TDS calculation or format for TDS certificate. Would you like that?
---
### Key Points:
1. **Nature of Payment:**
* Payment is for **sample testing of shipping machinery**.
* The work involves **certifying the quality** of machinery.
* This can be considered as **technical or professional service**.
2. **Which TDS Section Applies?**
* **Section 194J** covers payment for **professional services, technical services, consultancy, and certification services**.
* Since sample testing involves **certification of quality**, it likely falls under **technical/professional services**.
3. **Threshold Limit for TDS Deduction (Before 1st July 2010):**
* For payments under Section 194J, **TDS is deductible if the amount exceeds Rs. 20,000** in a financial year.
* Your payment is Rs. 22,000 (single bill), so TDS is applicable.
4. **Rate of TDS Deduction:**
* The applicable rate before 1st July 2010 under Section 194J was **10%**.
* Hence, TDS should be deducted @ 10% on Rs. 22,000.
---
### Conclusion:
* Since the payment of Rs. 22,000 (single bill) was made **before 1st July 2010**, and it is for **technical/professional service (sample testing & certification)**,
* **TDS @ 10% under Section 194J is applicable**.
---
If you want, I can help with TDS calculation or format for TDS certificate. Would you like that?
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