194j or 194c - accounting charges

Accounting also requires some sort of skill sets to perform the activities.  Unlike a contractual work, the accounting work cannot be done like that only.  It also requires  thnking & involves profesional work.

the people performing the accounting work may not be qualified profesionals, but ultimate responsibility is of the owner of the firm who has to be held responsible. So I dont think that the argument of your client is not valid & TDS is required to be made @ 105 only u/s 194J.

the Dept may also take up the case of your client for scrutiny & question for deduction of tax at lower rates than requried.

Your client's argument is right. as far as my experience in articles i think wat ever the TDS he is doing under section 194C is right. This accounting charges need not be paid to a professional. Even a person who did bcom can be paid accounting charges but that doesnt mean that he is a professional.

In simple terms

Contract 'means' - a job that can be entrusted to others.-an obligation to get the work done whether done by him or through somebody.  (a construction  work undertaken by a person - he does not do he only gets it done)

Profession means - a job he can not entrust it to any other. - the nature of job itself indicates - under normal circumstances. 

In your case your client is partly right in aruguing the way he is ......

If writing of his business accounts does not really need any specialised knowledge / quialification then he is right....YES.

Professional Services’ means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of Section 44AA or of this section.

So TDS would be deduct @ 10% (194J) 

 

What you said is from the point of view of those who are rendering the service. In the above case X did not avail the service of any person who has recognised qualification. But he clearly said that he does not need any qualified person.

To put in general terms a CA need not advertise that he can write accounts. Whereas others it is not so. ? does it mean- i.e. difference.

Others introduce themselves that can write books of a particular nature of company or particular type of buisness / a business company with so little turnover.  Thus he is limiting his professionalism. (this does noit indicate professionalism or specialisation - you got the point.)

Hence the above is only Contract. not professionalism.

Accounting requires some sort of skill sets to perform the activities. It also requires thinking & involves professional work, not like a contact.

Kindly read below to understand professional service 

Professional Services’ means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of Section 44AA. 

Accounting writing/charges is professional service not a contract, hence TDS @ 10% u/s 194J.

Accounting requires some sort of skill sets to perform the activities. It also requires thinking & involves professional work, not like a contact.

Kindly read below to understand professional service 

Professional Services’ means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of Section 44AA. 

Accounting writing/charges is professional service not a contract, hence TDS @ 10% u/s 194J.

which people comes under 194j