TDS 194J or 194 C?

As per the TDS rate you have mentioned it 's look like TDS over professional Services but for payment to professional (194 J) there are a rate of 10% + edu cess. So they are deducting excess tax. Secondly the limit for TDS for Professional is Rs. 20000/- in a year.

You have to check the limit and rate as I mentioned above with your payment. All TDS amount have been deducted on Bill amount

for more details please refer incometaxindia.gov.in

>> Rajesh

Dear Hardik,

i think company is deducting TDS u/s 194J and they are 11.33% (TAx+Surcharge+Cess) it seems ok. as u r working wih a company on contract basis for three months.

there is no problem /error made by company. it is ok.

if ur gross amount  payable is less than 1 Crore in a year they should not deduct Surcharge

in that case they should deduct 10.30% on gross amount.

Thanks

Praveen

Praveen is absolutely right with the provisions..

thank you for your prompt reply guys.. appreciate it..

As per my understanding 194J is applicable for FEES FOR PROFESSIONAL OR TECHNICAL SERVICES.. and it is also defined that "professional services" meanss services rendered by a person in the course of carrying on legal, medical, engineering or architechtural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the board for the purposes of section 44AA or etc...

However as i mentioned i am on a contract as a sales associate, doing business deveopment for my company. Do i fall under any of the professional services mentioned above? or should the 194C section (Payments to contractors and sub-contractors) be considered ? Also my Gross monthly contract pay is less than 50K. so is the 11.33%TDS justified?

Marketing professionals will also fall under the provisions of Section 194J. The company must be paying you marketing & professional fees and hence deduction tax on that rate u/s 194J.

If your total payment exceeds Rs. 10 lakhs during the year then they should have been deducting TDS @ 11.33% otherwise they must deduct @  10.3%. 

Even if your monthly contract pay was less than Rs. 50,000/- TDS u/s 194C would be applicable as the limit is of a single bill Rs. 20,000/- or Rs. 50,000/- for the year.

194J and 194c  lot of diffrenses is there; if professionaly excuted you can go by 194J means copare to 194C is higher rate;  normally companies will not take a ball on their court always they will go by the higher rate for safer side.

please tell me , how to prepare form 27A  and file TDS return

 TDS HAS TO BE DEDUCTED U/S 194(C) READ SECTION 44A. BEFORE DECIDING ON THIS MATTER PLEASE STUDY BOTH SECTION CLEAR IS QUITE CLEAR.

TDS under 194C brodly includes 4 types of contracts 1.Contract for carriage for Goods and passengers,here goods also includes documents. 2.Contracts for supply of labour and work. 3.Catering Contracts. 4.Service Contracts other than those specified in sec-194J. dear Hardik, as per the contractual aggrement first of all determine the scope of your work and made a comparsion with the meaning of professional/technical services. Based on which u can decide about the applicablity of sec-194C or 194J

Purchase a TDS return preparation software. It will automatically generate Form No. 27A and also a FVU file which is required to be written on a floppy or CD and filed with the TIN facilitation center at a place near you.