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TDS provision

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(Querist)
21 October 2008 In our Company, we have appointed a person as a chief engineer on one year contract basis. His age is around 70 years. So we can,t take him into the payroll.

I want to know the whether we have to deduct tax as per TDS provision or on the basis Income tax slab.
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Bharath Kumar

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Bharath Kumar (Expert)
21 October 2008 TDS will be applicable as per Section 194C of Income Tax Act.
Payments exceeding Rs.20000 is subject to tds @ 2.0%
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Guest

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Guest (Expert)
21 October 2008 As per my opinion the payment should be deducted @ 10% plus surcharge(if applicable) plus edu. cess.

Because the employee is engineer and providing the technical service to your company so it will be deducte as professional fee.

the fee for contractor can not be deducted because the rate of contractor is applicable on person who is providing the man power service. in the above case the person is providing the service not providing the service through persons.

so TDS will be applicable on fee for technical service or professional service
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Taxguy

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Taxguy (Expert)
21 October 2008 194J is appropriate. 10%+ 0.03%.
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
21 October 2008 Yes 194J seems correct.
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
22 October 2008 Tax at source is deductible u/s 194J. If he is taken on the payroll then it will be u/s 192.
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