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Tds 194j vs 194c

TDS / TCS 1641 views 1 replies

Would like to have clarifications on the TDS sec 194J.....for services rendered under consultant services. Services of qualified Nutritionist / Dietician / Beautician whose services are taken by any comapny on contract basis does the monthly fixed payout is subject to TDS u/s 194 J or 194c. Services taken are on a fixed brand category who are training customers on the companies product range.

Replies (1)
Originally posted by : Paromita Mitra

Would like to have clarifications on the TDS sec 194J.....for services rendered under consultant services. Services of qualified Nutritionist / Dietician / Beautician whose services are taken by any comapny on contract basis does the monthly fixed payout is subject to TDS u/s 194 J or 194c. Services taken are on a fixed brand category who are training customers on the companies product range.

The TDS category whether 194C or 194J to be decided NOT on the basis of frequency and amount of transaction but based on the nature of service. IF the services rendered are professional or technical in nature then 194J is applicable irrespective of frequency and amount of transactinos. This is a practice in may big companies where engineers are hired  on fixed monthly retainership charges. In those cases also 194J is applicable. In your case as the services of Nutritionist, dietician etc. are availed which are purely professional in nature, TDS u/s 194J is applicable. while judgin the applicability of section, one should consider educational qualification of the payee shall also be considered.

I hope it resolves the query. 


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