TDS 94C

TDS 5256 views 14 replies

A COMAPANY TAKING A TRADING SOFTWARE FORM A COMPANY LIKE SHILPI AND OTHERS PAY ANNUAL MAINTINANCE CHARGES I WOULD LIKE TO KNOW THAT IN WHICH SECTION I DEDUCT TDS, 94C OR 94J.

SUGGEST YOUR VIEW 

Replies (14)

Dear Rakesh,

I feel on this subject many people can have different views..

My advice would be to deduct as per 194 J since Higher rate of TDS is defined..to be on safer side..

AMC related to software required a specialised skill a professional and technical expert. Section 194J will be applicable

if the biller is billing bill along with service tax then deduct tds u/s 194j or else 194c can be applied

Originally posted by : CA Pramod Jain
if the biller is billing bill along with service tax then deduct tds u/s 194j or else 194c can be applied

  Sir Please explain your logic w.r.f. your Explanation

generally who ever bills service tax is a profession by nature, so it is logical to apply 194j or in above case for safer side 194j can als be levied if the biller has no issue.

If it is mentioned in the bill as professional services, then Section 194J is applicable.

If in the bill it is mentioned as Annual maintanence charges, then 194C is applicable. Why because as per act  Annual maintenance is a contract which will be signed by the both the parties aurtomatically, a contract will come under section 194C

 

 Any Payment regarding Profession & technical expert then Section 194J is applicable.

194J Only...as it includes technical and Professional Knowledge

u/s 194c

friends,

sec.194 J applies only for those specified prof. and techn. services staed in the explanation to sec.194J only. Soft ware AMC charges come under sec 194C only. Pls ignore billing methodes.

friends,

sec.194 J applies only for those specified prof. and techn. services staed in the explanation to sec.194J only. Soft ware AMC charges come under sec 194C only. Pls ignore billing methodes.

u/s 194C - The expression Work includes a) advertising b)broadcasting  and telecasting c) carriage of goods and passengers by any moe of transport other than by railway and d0 catering.

u/s 194J - Tax will be deducted on fees paying for Professioinal Services i.e legal,medical,engineering or architectural profession or the profession of accountancy or technical consultancy .

It is clear that your situation comes under Professional And Technical Services . So Tax should be deducted u/s 194J

It will be deducted under section 194C and not 194J....Its Software Maintaince Contract...... Expression work is inclusively and not exclusively defined.......


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register