Is TDS applicable for payment made on consulting fee paid by one advocate to another advocate?
Replies (10)
Quick Summary
This discussion clarifies whether Tax Deducted at Source (TDS) applies to consulting fees paid by one advocate to another. The consensus is that Section 194J of the Income Tax Act 1961 is indeed applicable, requiring TDS at 10%. This applies regardless of whether the advocates are individuals or if one party is a law firm, contrary to a claim made by one advocate. A key condition to check is if the receiving advocate's gross receipts exceeded 50 lakhs in the preceding financial year.
The advocate (to whom the consulting payment is to be made) mentioned that TDS is not applicable when making consulting fee payment from Advocate (Individual) to another Advocate (individual). It is only applicable if one of the parties is a Law Firm.
Trying to get clarity on this claim of exemption and the relevant provision under the Act.
It will surely be applicable under 194j. but do check if the advocate's gross receipts exceed 50 lacs in preceding fy.
The advocate (to whom the consulting payment is to be made) mentioned that TDS is not applicable when making consulting fee payment from Advocate (Individual) to another Advocate (individual). It is only applicable if one of the parties is a Law Firm.
Trying to get clarity on this claim of exemption and the relevant provision under the Act, if true and applicable.