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TDS applicability and GST implications on freelance payments to individuals

TDS / TCS 613 views 1 replies

I am a GST registered individual. I plan to pay professional/freelance fees to a few individuals for certain services. Each individual will receive more than 30k per year from me.

Some of these individuals does not have formal professional degrees(students) and also not be GST registered.

My queries are:

1. Will these payments still be allowed as business expenses even if the individuals do not have formal qualifications?
2. Which TDS section should generally apply in such cases, Section 194C or Section 194J?
3. If the freelancer is not GST registered, is there any GST liability on me such as Reverse Charge Mechanism (RCM)?
4. Apart from deducting and depositing TDS, are there any other compliances I should be aware of while making such payments?

Would appreciate guidance from members who have handled similar situations.

Replies (1)
Query Guidance
Expense Allowed? Yes, if it's for business. No degree required.
TDS Section? 194J (10%) for skills; 194C (1% ) for general work.
GST RCM? No, unless it's a specific notified service (like Legal).
Key Form? Form 26Q (Quarterly Return) and Form 16A (Certificate).


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