Liasoning charges

Liasoning - means legal

so liasoning charges means legal charges.

& as far as TDS is concern it sholud be deducted u/s 194J (i.e of proffesional charges)

Liaisoning is not the same as legal charges. It means coordinating with government departments for approvals, licences and clearances on the payer's behalf.

TDS depends on who renders the service and what it is:

• By a liaison agent or firm (most cases): contract for work, Sec 194C at 1% (individual/HUF) or 2% (others). Threshold is Rs 30,000 per payment or Rs 1 lakh a year.

• By a CA, advocate or other notified professional as part of professional work: Sec 194J at 10%, threshold Rs 50,000 a year (from 1 April 2025).

• From 1 April 2026 these are covered by Sec 393 of the Income-tax Act, 2025, with the same rates.

Other points:

• GST: 18%, SAC 998599 (other support services). Insist on a proper tax invoice to claim ITC.

• Disallowance risk: any part of "liaisoning" that is in substance a payment to a public servant is disallowed under the Explanation to Sec 37(1) and is a criminal offence. Get itemised invoices and a scope-of-work agreement, and keep proof of the approvals actually obtained.