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diff between u/s 194j and 194c

ashok aggarwal (Advocate) (37 Points)

10 August 2010

hi friends

i have return filed for the a/y 2008-09 and claim refund Rs. 3 lacs i am a civil contractor as per contract deed with a company but company deduct TDS u/s 194j But actually TDS make U/s 194c Gross received 3980000/- and return filled u/s 44ad but income tax officer say that your TDS dedut u/s 194j so you are under tax audit because you have gross received exceed 10/- lacs but actually i have worked u/s 194c and refund claims u/s 194c and exceed gross received 40/ lacs so i am not under in audit case

Plz send me the answer in my email:ashok_advocate @ yahoo.com.

Ashok Aggarwal

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3 Replies

Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 10 August 2010

DEAR ASHOK,

ONLY BEACUSE OF TDS CERTIFICATE SHOWING THAT TDS DEDUCTED UNDER SEC 194J CANNOT PROVED THAT U ARE ACTUALLY CARRYING TTHE PROFESSION. TDS DEDUCTOR HAS MADE THE MISTAKE IN DEDUCTING THE TDS UNDER 194J INSTEAD OF 194C. SO IN THAT CASE, U CAN MAKE A REPLY TO THE AO SPECIFYING THE KIND OF SERVICES PROVIDED. U MAY ALSO ATTACHED COPY OF THE CONTRACT TO JUSTIFY AO THAT U R A CIVIL CONTRACTOR.

THIS IS A MISTAKE ON PART OF DEDUCTOR OF TDS AND ONLY BEACUSE TDS DEDUCTED UNDER SEC 194J WOULD NOT MAKE A BUSINESS AS PROFESSION IF U HAVE PROPER SUPPORTING TO PROVE THAT U R CARRYING ON BUSINESS OF CIVIL CONTRACTOR.

REGARDS,

MANOJ

CMA. Subhash Kumar Jha (General Manager - Finance) (8391 Points)
Replied 11 August 2010

Civil contract comes under section 194 C so you can always contest your case. Merely because the party has mentioned section 194 J in form 16A or in his tds return, does not change the nature of work done by you. You must contest your case.