Whether tds should be deducted or not
This query is : Resolved
10 October 2013
A company has made payment to Foreign Trade Development Association/Chamber of Commerce, for obtaining Certificate of Origin, and the total payment exceeds Rs. 30000 during the year, so whether the company is liable to deduct TDS and if yes than under which section?
Whether it is a professional service?
Whether it is a professional service?
10 October 2013
is this payment fees for issue of certificate?
11 October 2013
Yes Nikhil Kaushik the payment is for issue of cetificate of origin
03 August 2025
Got it. Here's a clear explanation regarding the TDS (Tax Deducted at Source) on payment made for obtaining Certificate of Origin from Foreign Trade Development Association/Chamber of Commerce:
---
### Whether TDS should be deducted or not?
**Context:**
A company has paid more than Rs. 30,000 during the financial year to Foreign Trade Development Association/Chamber of Commerce for obtaining Certificate of Origin.
---
### Is TDS applicable?
Yes, the company **is liable to deduct TDS** on such payments if the total payment exceeds Rs. 30,000 in a financial year.
---
### Under which section?
* The payment for obtaining Certificate of Origin can be considered as **fees for professional or technical services**.
* Hence, TDS is typically deducted under **Section 194J** of the Income Tax Act, which deals with deduction of tax on fees for professional or technical services.
---
### Is this payment considered as "Professional Service"?
* Generally, **fees for issue of certificate of origin** by Chamber of Commerce or similar bodies are regarded as **professional services**.
* Therefore, the payment falls under the ambit of professional services attracting TDS under Section 194J.
---
### Summary:
| Aspect | Details |
| ---------------------- | ---------------------------------------------------------- |
| Payment Type | Fees for issue of Certificate of Origin |
| Threshold for TDS | Exceeds Rs. 30,000 in a financial year |
| Applicable TDS Section | Section 194J (Fees for professional or technical services) |
| TDS Applicability | Yes, deduction is mandatory |
---
If you want, I can help draft a formal note or email for your company’s finance team or clarify any more specific points!
---
### Whether TDS should be deducted or not?
**Context:**
A company has paid more than Rs. 30,000 during the financial year to Foreign Trade Development Association/Chamber of Commerce for obtaining Certificate of Origin.
---
### Is TDS applicable?
Yes, the company **is liable to deduct TDS** on such payments if the total payment exceeds Rs. 30,000 in a financial year.
---
### Under which section?
* The payment for obtaining Certificate of Origin can be considered as **fees for professional or technical services**.
* Hence, TDS is typically deducted under **Section 194J** of the Income Tax Act, which deals with deduction of tax on fees for professional or technical services.
---
### Is this payment considered as "Professional Service"?
* Generally, **fees for issue of certificate of origin** by Chamber of Commerce or similar bodies are regarded as **professional services**.
* Therefore, the payment falls under the ambit of professional services attracting TDS under Section 194J.
---
### Summary:
| Aspect | Details |
| ---------------------- | ---------------------------------------------------------- |
| Payment Type | Fees for issue of Certificate of Origin |
| Threshold for TDS | Exceeds Rs. 30,000 in a financial year |
| Applicable TDS Section | Section 194J (Fees for professional or technical services) |
| TDS Applicability | Yes, deduction is mandatory |
---
If you want, I can help draft a formal note or email for your company’s finance team or clarify any more specific points!
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