Tds rate of recrument agencies

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Raju Kumar (Querist)
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20 May 2014 Dear Sir,
I want to know to all of you I have take a service to Unimax Search ( Recrument Agency) Pls advice me tds deduction rate 194j or 194c.

Sandeep Dharar

Sandeep Dharar (Expert)
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20 May 2014 It should b u/s 194C only n not under 194J.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 May 2014 have to disagree with Sandeep.

Raju,

Please refer Circular No 715 dated 8 August 1995. Payment made to recruitment agency will attract 194J.

Sandeep - for your benefit:

"Question 12 : Whether payment to a recruitment agency can be covered by section 194C ?

Answer : Provisions of section 194C apply to a contract for carrying out any work including supply of labour for carrying out any work. Payments to recruitment agencies are in the nature of payments for services rendered. Accordingly, provisions of section 194C shall not apply. The payment will, however, be subject to TDS under section 194J of the Act."

Source: https://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=CIR&schT=&csId=0e172c40-2f95-4c82-a363-953ab165a929&crn=&yr=1995&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws

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