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Difference between 194c and 194j

Ram (NA) (98 Points)

14 August 2018

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?

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2 Replies

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 14 August 2018

194J is for professionals and 194C is for contractors

So depending on nature of transaction check which suits better

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Aravind Ravichandran (2 Points)
Replied 15 August 2018

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.