TDS on childcare services

Dear Experts,

Can you please enlight under which section should we deduct TDS for childcare services ? is it 194J or 194C ?what if we has agreement? and without agreement ? does agreement has any relevance here ?
Replies (6)
Quick Summary
This discussion clarifies the TDS implications for childcare services, specifically creche facilities. It explains that TDS liability generally falls on business enterprises, not individuals. The applicability of Section 194C (contractor services) or 194J (professional/technical services) depends on the nature of the service and the presence of a formal agreement.

Child care services something like creche .
Am I correct?
Yes creche services only
Individuals have no liability to deduct Tds for payment towards child care .

If you are business enterprise then only there can be tds liability

Sir,

kindly clear it is 194J or 194C ?? 

Regards 

Mahesh
 

 

For companies having contact for childcare creche TDS provision u/s. 194C will be applicable.


Under the Indian Income Tax Act, the deduction of Tax Deducted at Source (TDS) for childcare services depends on the nature of the services and the terms of the agreement. Let's discuss the two sections you mentioned:

  1. Section 194J: This section deals with TDS on fees for professional or technical services. If the childcare services can be classified as professional or technical services, then TDS should be deducted under Section 194J. Professional services generally require specialized knowledge and skills.

  2. Section 194C: This section pertains to TDS on payments made to contractors or sub-contractors for work or services. If the childcare services are provided by a contractor or a sub-contractor as part of their services, then TDS should be deducted under Section 194C.

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