TDS u/s 194 c or 194 J
This query is : Resolved
28 September 2010
Hi,
We have paid Rs. 1,35,000 /- for website development.
My query is that whether TDS will be deducted on this payment, and if yes than under which section 194C or 194 J.
But as per sec 194C Work means and shall include Manufacturing a product according to the requirement or specification of a customer by using material purchased from such customer.
but for website development althogh specification is given by us but their is no materiul supplied ( i.e not feasible.)
U/s 194J how can it be covered because it not a techincal or professional service as per their defination.
Please answer.
Ketan Sharma
We have paid Rs. 1,35,000 /- for website development.
My query is that whether TDS will be deducted on this payment, and if yes than under which section 194C or 194 J.
But as per sec 194C Work means and shall include Manufacturing a product according to the requirement or specification of a customer by using material purchased from such customer.
but for website development althogh specification is given by us but their is no materiul supplied ( i.e not feasible.)
U/s 194J how can it be covered because it not a techincal or professional service as per their defination.
Please answer.
Ketan Sharma
28 September 2010
Both the sections merit equal consideration.
If it is a service contract, 194C is attracted. If it is construed as a rendering of technical service, 194J is attracted, being fee for technical service.
Fee is a consideration for advice. In this case there is no advice, rather carrying out the work itself. It appears to be contract for carrying out any work rather than mere technical advice. Hence section 194C is attracted.
More over, the term of the expense is Web Development charge and not web development fee.
Views of other expert also solicited.
If it is a service contract, 194C is attracted. If it is construed as a rendering of technical service, 194J is attracted, being fee for technical service.
Fee is a consideration for advice. In this case there is no advice, rather carrying out the work itself. It appears to be contract for carrying out any work rather than mere technical advice. Hence section 194C is attracted.
More over, the term of the expense is Web Development charge and not web development fee.
Views of other expert also solicited.
28 September 2010
Agreed with Mr. Sanjay.
But to avoid any litigation , applying 194J would be safer as the therm "Web Development charges" itself suggest a delivery of some technical service.
But to avoid any litigation , applying 194J would be safer as the therm "Web Development charges" itself suggest a delivery of some technical service.
28 September 2010
If term "Web Development Fees" is used then Sec 194J Can be applied.
CA. Harinder Kumar
(Expert)
27 October 2010
It must be under 194J as it is Fees for technical services and professional. Because web site development is done by only professional of IT sector and not by every body
Message likes :
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Sandeep Jadhav
(Expert)
04 November 2016
web site development done by Professional people who controlled all activity as per their professional / technical skill as per instructed by their client hence 194J section applied in this case. (@10%)
Web site maintenance word indicate 194c @2% or 1%
Web site maintenance word indicate 194c @2% or 1%
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