Tds- section 194j v/s 194c

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This query is : Resolved

Mohit Joshi (Querist)

03 July 2012 we pay professional fees to a professional enforcement agency. that agency hired a security agency and paid on our behalf after TDS deduction u/s 194C. later this agency raised its invoice for that security expense to us as re-reimbursement of expense. now the thing is that whether we should treat this payment as security exp. and go for 194C or same as professional fees u/s 194J as was earlier? as per me, it should be professional fees only because security agency raised bill on this enforcement agency and same is re-reimbursed by this agency from us. there is no direct relation between us and security agency. please explain?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

03 July 2012 Dear Mr. Mohit,

Payment made to Enforcement agency does not alter the nature of payment made by you to such agency.
It will always be reimbursement towards security agency and liable for TDS 194C irrespective of the facts that the amount is paid to professional agency.

CA Prashant Gupta

CA Prashant Gupta (Expert)

04 July 2012 if they are raising invoices separately. one for their charges and one for that reimbursemnt then u can separtely charge TDS. But if they are generating invoice single then TDS u/s 194 J will be applicable.

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