I Agree With CA Kiran Sutrave......Nature of Services determines which Section will be applicable.

Dear sir,

As the repairs,maintenance and inspection is done by him, he is a professional and 10% TDS is the correct rate.

So continue to deduct the same 10%. This is like advance tax .

Regards,

Viswanathan.C.P

Dear sir,

As the repairs,maintenance and inspection is done by him, he is a professional and 10% TDS is the correct rate.

So continue to deduct the same 10%. This is like advance tax .

Regards,

Viswanathan.C.P

Dear Mr.Kiran Sutrave,

Thank you for your valuble response,

Here my doubt is on what basis we can consider as proffessional or technical services,

The person working in the port profile is as follows,

1). He takes care of our Containers at Mumbai yard, i.e. if repairs are required to be done to containers he will check if really it is required then he will approve the company who will do repairs to the tank.

2). After the repairs are done to the Containers he will take the certificate given by the company (who does the repairs) and re check the container for confirmation of repairs done.

3). If clients wants to the containers in the yard, he handle client vists.

Dear Mr.Kiran Sutrave,

As of now we are deducting TDS u/s 194J - @ 10%.

Please explore is there was any other alternatives to reduce the TDS legally,

Ex- by creating contract agreement if possible etc...

Dear Venkat

As per the descripttion given by you about his scope of work it is advisable to appoint him as an employee of the Organisation.

If it is not possible then TDS is to be deducted @ 10% under Section 194J of the Income Tax Act, 1961.
There is no alternative to this as mentioned in my earlier posts.

Wait for suggestions of others.

Mr. Venkat .. earlier you mentioned that he has been employed. In that case sec 192 is attracted. The Nature of work you just mentioned does not fall under the meaning of work as defined u/s 194c(7). It looks prima facie that person is managing your work at the port and it falls under  fee for technical services as defined  under subsection (b) of sec 194 j.   . So as per my knowledge tds will deducted u/s 194j as it is being done if the person is not an employee

Dear All,

Thank you for your response,

As of now we are deducting TDS @ 10% u/S 194J,

It is not possible to employ him as an employee.

So is there any other alternatives for reducing TDS legally .... as that person cannot claim tds 

he is not providing any technical services i believe. 

You can deduct TDS at whatever rate you want to but if there is any scrutiny or any assessment of tax then at that time there will problem to the Company and Interest and/or penalty will be charged to the Company.

How can anyone say that he cannot claim tds. If PAN is correctly mentioned then he can claim it and there will be no problem.

Choice is yours and you have to decide whether you want to go as per law or as per personal wish of that person. Till now what is followed by the Company is correct.

just read your last post..... ask that person to provide u 15G/H so that u dont need to deduct any tax ............. 

Mr Venkat .. He may not be providing technical services but as per law his managerial services falls under the meaning of technical services .

I think treat him as en employee and enter his name in payroll register

If you are giving the plea of nature of work performed

then why director's remunaration is treated as employee.He is also providing technical services but still where he draws monthly remuneration.It is treated as an employee/employer relationship

So better to treat in this case as an employee

Further if he is ready to give PAN no.+ ready to get his TDS deducted and he is issuing invoice then treat him as professional

Hello Venkat

TDS should be deducted @ 10% u/s 194J as the nature of services provided are professional. Your treatment is correct.

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he is employee of a company  becouse company has provide a  such kind of job profile to the person that's why tds ded as a normal slab rate  as per  F.Y