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Section- 194j of i.t act 1961

CA.AZAD JAIN (CA) (201 Points)

14 May 2013

Whether definiton of Technical Services includes Recruitment services as per Section 194J of Income Tax Act, 1961?

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7 Replies

HARISH BANSAL (student) (229 Points)
Replied 14 May 2013

i think, Yes.....

Deepak Gupta (CA Student) (15922 Points)
Replied 14 May 2013

Originally posted by : Azad Jain
	Whether definiton of Technical Services includes Recruitment services as per Section 194J of Income Tax Act, 1961?

Payments to recruitment agencies are in the nature of payments for services rendered, and hence will be subject to TDS under section 194J of the Act.

In view of Answer to Question No.12, as provided in Circular No.715, dated 8.8.1995

"fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9
.
.Explanation [2].—For the purposes of this clause, "fees for technical services" means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries".]

CA Himanshu Bansal (Risk Manager) (2345 Points)
Replied 14 May 2013

Yes it will be included.

Ganeshbabu K (Audit and Tax Advisory) (48559 Points)
Replied 14 May 2013

It is in the defination of 194J

CA Ketan Kothari (Associate Consultant) (86 Points)
Replied 15 May 2013

Hello Ajad,

Recruitment service comes under the purview of Professional Service and hence TDS is liable to be deducted u/s 194J. TDS is deductable if annual amount payable/paid would exceed Rs. 180000.00

Thanks & regards

Ketan Kothari

CA.AZAD JAIN (CA) (201 Points)
Replied 15 May 2013

Hello Ketan ji

Kindly reply with case laws, if any, that how the recruitment services is covered under the purview of definition of Profession, as one can carry on the business of Recruitment Services even a person does not have specialised knowledge & skill.

Kind Regards

CA. Azad JAIN