TDS above Rs20000 Payment.

I am a job consultant in new delhi and i am new to this business.

Today I raised an invoice of around Rs14000.My firm is not registered so i dont pay Service Tax as well.

I got the mail from my clieent today that since his company is Pvt Ltd so if next payment goes above Rs20000 thn  the TDS @ 10.3% would be deducted from the payment made to you as your commission.

 

What are your reviews about it ? Is he right ?

Replies (7)

Whats ypur nature of service? I don't think its commission, because in commission, threshold limit is just Rs. 2,500.00.

dear sarvesh, please explain the nature of payment in this case............

yes same question what type of job consultant u are

whether it is professional serivice, commissioning base payment or any other payment

AS PER MY OPINION

 

AS U SAID ABOVE U R A JOB CONSULTANT

 

SO , I THINK U R RECEIVING THE PROFESSIONAL FEES

 

M I RIGHT ?

 

IF I M RIGHT THAN AS PER SECTION 194 J THEY WILL DEDUCT THE TDS BUT AT THE RATE OF 10% NOT AT THE RATE OF 10.3%,  IF THE PAYMENT IS BEYOND / ABOVE 30000

BUT U HAVE TO TELL THEM FIRST THAT THEY CAN DEDUCT 10% TDS NOT 10.3%

Dear Dheeraj & All ,

With refrence to your views i want correct with stating that "Theresold limit for 194J-Professional Fees is Rs 30,000/-  with effect from 01/07/2010 (please refer new budget changes 2010).

So hope you will updated the information.

 

 

Thanking You.

 

Best  Regards,

Balram B

 

 

 

 

 

THANKS MR BALRAM

ACTUALLY I WAS TOTALLY UNKNOWN ABOUT THIS AMMENDMENt

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