Tds to Pujari payment

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A business paying a monthly fee to a pujari for daily Abhishek at a Lord Shiva temple may be liable for TDS deductions. Despite booking the expense as a donation, the payment is considered a professional service under Section 194J of the Income Tax Act. TDS is applicable at 10% if annual payments exceed £30,000, regardless of how the expense is treated in the profit and loss account.

Rajkumar Gutti

Rajkumar Gutti (Querist)

05 November 2025 We are a business organization. We paid Rs. 12000/- Monthly to pujari ( priest ) for Abhishek on daily basis👌to lord shiva Temple 👍. This expenses we debited to donation👍 account ( not included deduction in P&L account / i. e. Add back to profit👍.

Can we are liable to deduct tds? If yes under whic section.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

05 November 2025 Yes, your organization is liable to deduct TDS on monthly payments to the priest. The applicable section is Section 194J of the Income Tax Act, which covers fees for professional services. - TDS is applicable at 10% on payments exceeding ₹30,000/year.

- Even if the expense is booked under "donation" and added back to profit (i.e., not claimed as deduction), TDS liability arises at the time of payment or credit, not based on its treatment in P&L.

Rajkumar Gutti

Rajkumar Gutti (Querist)

06 November 2025 Is it ok to deduct u/s 194 C

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

06 November 2025 No. It is considered as professional service.

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