TDS Rule application or not

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2010 Dear All,
can anybody provide the Income tax provision regarding "material sent to laboretary for testing purpose", So we booked the expenses under the head "Testing charges". We are comes under civil construction category.My actually quarry as "is testing charges eligible for TDS deduction". If yes then under which head it should be deductable.

Please it's request exparter should give proper clarity on it.

MAHENDRA KUMAR BAGRECHA

MAHENDRA KUMAR BAGRECHA (Expert)

11 May 2010 Section 194J is applicable on payment made/credited for any professional services. Lab testing charges cann't be done by an unprofessional person. As per my personal view, TDS on lab testing charges should be deducted U/s 194J

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

11 May 2010 yes.testing charges TDS applicable u/s/194J

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)

12 May 2010 AGREE WITH EXPERTS ADVICE.

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2010 Thanks for anticipation to Mahehdra kumarji.
Here one more quary if this testing charges paid on behalf purchaser then is it TDS coverage? If not, than how to treat this testing charges in our books of account.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

12 May 2010 This is the agreement between you and your supplier, whehter reimbursment type or actual expenses of your company. based on that you need to take. whether your are booking the expenses as testing charges or added to the purchase cost please clarify the same

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