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194 j tds for professional services

krishan agrawal (Student CA Final ) (465 Points)

01 February 2017

My dad is doing Railway construction business under firm name and paying 30000 rs to my brother for Engineering services provided.My brother dont have any other income will my dad require to deduct tds?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 01 February 2017

Your dad works as propritorship or partnership or corporate?

If properitorship, whether he is liable to tax audit?

Prashant Sharma (CA) (389 Points)
Replied 01 February 2017

According to section 194j if you are paying more than 30000 you need to deduct TDS @ 10%.

This 30000 limit is for whole yeat.

If your father paying 30000 every month than he has to deduct TDS.

krishan agrawal (Student CA Final ) (465 Points)
Replied 01 February 2017

Partnership firm my brother is partner also of 25% share and also provide engineering service plus our turnover is more than 2cr

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 01 February 2017


	My dad is doing Railway construction business under firm name and paying 30000 rs to my brother for Engineering services provided.My brother dont have any other income will my dad require to deduct tds?

"............my brother is partner also of 25% share............"

Dear,

From next time give complete information, so that you get right answer.

Being partnership firm the TDS liability arises, subject to threshold limits.

krishan agrawal (Student CA Final ) (465 Points)
Replied 01 February 2017

Sir Firm is just created in this financial year only but on individual basis my dad was covered tax audit.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160322 Points)
Replied 01 February 2017

Now, I presume the TDS is going to be deducted from your dad's proprietorship firm, which was liable to audit/audited in previous financial year, and the answer again is YES, subject to threshold limit.