tds on security charges

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shikha (Querist)
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05 March 2010 hi friends
we are a construction company, we are taking serivces from a person, he is providing us 2 security gards for office & charging for the same.
on bill amt its written charges for security is rs.9920/- & he is also charging service tax on the same form us.
does this payment subject to tds? if yes,then under which section?
plz help me

Aditya Maheshwari

Aditya Maheshwari (Expert)
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05 March 2010 TDS deductible u/s 194C as it is considered as a contract

CA.Nikhil Gupta

CA.Nikhil Gupta (Expert)
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05 March 2010 Dear,

Payment made to agency for providing security guards might also be covered u/s 194J. as in particular case in Chandigarh, IT officials are considering it as professional services instead of manpower supply contract. thus, charging sec 194 J instead of 194C.

So, in case any notification/circular or case law is there for applicability of 194 C, pls share the same.

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shikha

shikha (Querist)
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05 March 2010 but i don't thibk its covered u/s 194J since the person who is providing services is a illiterate & working as a business man. can he be covered u/s 194J or 194C?