Tds under 194c or 194j

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Raj (Querist)
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01 November 2012 For FY 12-13, we need to deduct TDS on payments made to a Pathology Labs for services rendered by them for testing of blood samples.
Payments are to be made in excess of Rs.30,000/- for the FY.

There is no physical Contract for Services to be rendered between the Medical Lab and the Company.

Under what Section is TDS to be deducted (194C ie 1% or 194J ie 10%) ?
Is a Contract mandatory for deducting TDS under 194C?

Please advise..

Vimal Saini

Vimal Saini (Expert)
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01 November 2012 Dear Raj,

As per Section 194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—
(a) fees for professional services, or
(b) fees for technical services

Further as per Explanation read with Section 44AA Professional services means Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette.

so here your transaction would be covered under Section 194J, not in Section 194C.

Further no Contract in physical is required to to fall under Section 194C. Only transaction need to be analysed as per Section 194C , if it is falling under this . Than only this would be applicable.

Hope it will satisfy your need, in case of further query u can contact me on 9999859176

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Raj

Raj (Querist)
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01 November 2012 Dear Vimal,

Thanks a lot for your prompt response !!

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