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TDS for engineer who was hired for 6 months contract

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MATHEWS123

ENG

21 Points Posted on 17 July 2020

Hi ,

we recruited an engineer for doing design work for a period of 6 months starting frrom june.

during the period he will earn roughly 14lakhs

do we have to deduct 10% TDS

Replies (3)

Quick Summary

This discussion clarifies the correct TDS (Tax Deducted at Source) deduction for a contract engineer hired for a 6-month period. The key question is whether to deduct TDS under Section 194J (technical services, consultant) or Section 194C (general contract work) of the Income Tax Act. The consensus leans towards 194J if the engineer is acting as a consultant, with a reduced rate of 7.5% currently applicable, while 194C might apply for other types of contract work.

prasad Nilugal

3924 Points Posted on 17 July 2020

I think you have to deduct TDS under 194 J of the Income Tax act 1961 , please confirm with others also

ATUL Y

574 Points Posted on 17 July 2020

Could you elaborate the nature of work done by Engineer? Because 194j is depends on the nature of work of technical services provider. An engineer may provide technical services but he can also come under contract which attracts section 194C (1%/2%).