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TDS for professional services

Ritik Chopra (student) (8133 Points)

05 May 2021

A Ltd. credited ` 28,000 towards fees for professional services and ` 27,000 towards fees for technical services to the account of Ram in its books of account on 11.05.2020. The total sum of ` 55,000 was paid by cheque to Ram on the same date. What would be the TDS?

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7 Replies

CA. Sourav Sarkar (Chartered Accountant ) (24588 Points)
Replied 05 May 2021

As payment under 194J will be limited to 30000 rupees so in this case the payment of 28000 rupees and 27000 rupees should be made in different dates and in different mode of payment so it might be that TDS should be deducted only on 30000 rupees

Lotus Agrawal (Practice) (1361 Points)
Replied 05 May 2021

As both the fees does not exceed 30,000/-. No TDS required in any case.

CA Raj Doshi (Practising CA) (8944 Points)
Replied 05 May 2021

Disagree with Sourav ji and Lotus ji. TDS shall be deducted on full amount of Rs. 55000. Professional fees once crosses Rs. 30000 p.a, TDS is deductible on full amount. There is no bill wise limit as that in 194C.

Lotus Agrawal (Practice) (1361 Points)
Replied 05 May 2021

Sir, this is the case of one professional services and other technical services. limit of 30000 is separately given for both.

CA Raj Doshi (Practising CA) (8944 Points)
Replied 05 May 2021

Thankyou Lotus ji. I misread the query. I missed that it spoke of technical fees and professional fees. I overlooked it to be professional fees only. agree with lotus ji on that.