1) if an huf provides professional services to our company amounting to rs 100,000 per month,then we have to deduct 10 % tds on professional bill. do we have to take care of 250,000 rupees exemption limit or just deduct 10 % tds on every bill .
2)if a bill has service tax on it do we have to deduct tds on that bill oly for the reason that service tax is charged.
Dear Aayesha,
Section 194J states that if fees for professional or technical work is at Rs. 30000/- or more than 30000/- then you need to deduct TDS @ 10%.
You do not need to think about the basic exemption limit.
In the second case you also need to deduct the TDS. See the attached file for ready reference.
I think that the upmost question is whether a HUF can provide professional services? Do we have any decided case laws in support?
Naveen Rishi
SKAA & Associates
New Delhi
CA Inter
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Interactive Media Pvt Ltd.
New Delhi
CA Inter
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BHUPINDER SHAH AND COMPANY
New Delhi
CA Inter
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Triveni Turbine Limited
Bengaluru
CA
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