Tds on commercial coaching and training

Dear Mahesh,

Thanks for your prompt reply. Can I engage in work as a contractor with the said company so that the TDS deductable comes to 1% or 2%. 

Does contract work limit itself to physical construction or even to IT work.

How do I establish that I am working as a contractor with this company.

Kapil

Dear kapil

since you are providing professional service (training services is comes under prof service)  to employee of comapany. 

we can't say that only construction services comes under contractor service. job work, placement agencies etc also a contractual nature of service

you are not a contractor as you are 

According to Lloyds Register Industrial Services (India) Pvt. Ltd. vs. ACIT  the training fee cannot be termed as “fee for technical services” and no TDS is to be deducted from the same.

But then , it is safer for the payer to adopt a conservative approach and deduct TDS @ 10% 194J

Dear Kapil,

Sorry, i was not answer your Question later.

Kapil, you are providing Only the technical service to Pvt. Ltd. Organisation, In the same senario they will deduct TDS on 94J on professional if your bill cross the exemption limit.

In case if your are providing Technical + Residence + Food + Seminor/Confrence+Night Stay etc. to Pvt. Ltd. Org. then in that the liability comes in Sec 94C @ 1%.

Regards

Mahesh Yadav

The Delhi tribunal has held that payments to institutions providing technical training to employees of assessee are not payments for pro-viding professional services and would not attract withholding tax provisions of 194J.

The assessee, a joint venture company, made payment (including tuition fees and training-related expense) to a management development institute for providing advanced management training to its director without withholding any tax (TDS).

According to the assess ..