TDS under 194J or 194C as per nature of service
This query is : Resolved
15 June 2009
The vendor has entered into agreement for supply of technical resources/manpower for our onsite project in India for temperory period, the resources are onroll employees of the vendor getting a regulor salary from vendor.
The vendor is doing billing under the discription of "Towards service charges and transfer fee of deputees for the month of ....".
As per above, please suggets under which section TDS should be deducted, 194 C or 194 J.
The vendor is doing billing under the discription of "Towards service charges and transfer fee of deputees for the month of ....".
As per above, please suggets under which section TDS should be deducted, 194 C or 194 J.
Bindu Madhav
(Expert)
15 June 2009
As it looks pure manpower contract it will be covered under 194C (works contract). If all persons deputed were professionals and deputed for PROFESSIONAL Service - then 194J will apply.
15 June 2009
Thanks for the reply,
This is a pure technical service, the manpower utilisation is of software engineer.
If I would have hired this resource directly then the TDS would have been deducted u/s 194 J, but if we consider this in 194C, then don't you feel it could be the escape from 194 J.
I feel, hiring a manpower directly and through the contractor should not impact the TDS section, it must be 194J only...
Your views please
This is a pure technical service, the manpower utilisation is of software engineer.
If I would have hired this resource directly then the TDS would have been deducted u/s 194 J, but if we consider this in 194C, then don't you feel it could be the escape from 194 J.
I feel, hiring a manpower directly and through the contractor should not impact the TDS section, it must be 194J only...
Your views please
CA Nitin Wadhwani
(Expert)
02 July 2009
Yes.
Tax would be deducted u/s 194J only.
Tax would be deducted u/s 194J only.
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