Tds for interior work contract

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Sreejesh V K

ICMA Final Student

54 Points Posted on 29 July 2015

Dear Friends,

Hope you all doing well!! Need you kind assistance on below case.

My friend have a Interion contract business. One of his client is going to deduct TDS @ 10% u/s 194J as they consider it as technical fees. As far as concerned, the above case could be considered as the payment to contracor u/s 194C or not?? If yes, he is subjected to pay only 1% instead of 10. Awaiting for your latest advise...

Replies (2)

Quick Summary

TDS on interior work depends on nature of service. If it involves supply of material and labour, it is a contract under 194C with lower TDS. Pure design or advisory services fall under 194J with higher TDS.

Rajagopalakrishnan R

PARTNER

1145 Points Posted on 29 July 2015

The nature ofjob will determine the nature of TDS too!. Is your friend offering advisory on how the interior should be done ( design drawings or plain advice) or is he doing the interior job work itself. The first one would be Tech fees, second be contract. Note that whenever delivery of material and labour in a composite form is involved it can only be a contract and not tech or prof fees.

Sreejesh V K

ICMA Final Student

54 Points Posted on 29 July 2015

Originally posted by : Rajagopalakrishnan R
	The nature ofjob will determine the nature of TDS too!. Is your friend offering advisory on how the interior should be done ( design drawings or plain advice) or is he doing the interior job work itself. The first one would be Tech fees, second be contract. Note that whenever delivery of material and labour in a composite form is involved it can only be a contract and not tech or prof fees.