Difference between 194c and 194j

A client is offering a vendor/service provider an option to deduct TDS either under 194C i.e. 1% or 194J i.e. 10%. Which should be chosen? What is the difference?

Replies (2)

194J is for professionals and 194C is for contractors

So depending on nature of transaction check which suits better

The service offered must have some human interface. If it is automated, then there it is not a Dee for technical service and consequently 194J is not attracted. Contract for sale of goods are outside the ambit of 194C.

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