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194j applicability

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r_bhagwat

197 Points Posted on 26 March 2014

One of my friend (kaushal)who has passed ca final one grp and completed articleship (semi qualified )

assisted doing a task of project financiang to his friend (raj) on assignment basis (throgh his experience and requisite skill)

He is not doing job anywhere.

Now raj wants to pay rs 60000 to him

Is raj required to deduct tds????

Is Mr kaushal a professional us 194J of income tax act????

Replies (7)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Posted on 26 March 2014

Mr. Bhagat if mr. Raj is under tax audit then only he needs to deduct tds. And yes you can deductvtax under 194j in this case or if mr. Kausal is below taxable limits then he can also give a certificate under sec 197. Regards

r_bhagwat

197 Points Posted on 26 March 2014

But Mr Manoj

Is kaushal a professional u/s 194J as he has not yet passed CA exam???

so his tax is rqd to be deducted u/s 194j???

siva thunder

article student

253 Points Posted on 26 March 2014

How can i know the total tds payments made by monthly wise and in section wise... of my client

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3506 Points Posted on 26 March 2014

In order to be a professional pass in CA Final is not absolutely necessary for the purpose of tax deduction at source under 194J. It is necessary that service is rendered with special skills, knowledge etc which an ordinary man would not possess.

Thanks,

gaurav gandhi

assistant accounts manager

30 Points Posted on 26 March 2014

Dipjyoti is correct...there is nothng mentioned in the act that one must possess any degree before deliverng any professional services. Advice by Mr. Mehta is also correct.