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194j applicability

r_bhagwat (cA) (197 Points)

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????

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7 Replies

Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 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 (cA) (197 Points)
Replied 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)
Replied 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@ rediffmail.com ) (3468 Points)
Replied 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)
Replied 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.