Is TDS applicable for payment made on consulting fee paid by one advocate to another advocate?
veerendar singh
(tax consultant)
(3301 Points)
Replied 12 May 2021
CA. Sourav Sarkar
(Chartered Accountant )
(24578 Points)
Replied 12 May 2021
Rishi
(NA)
(27 Points)
Replied 13 May 2021
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.
Rishi
(NA)
(27 Points)
Replied 13 May 2021
| Originally posted by : veerendar singh | ||
 |
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. |
 |
veerendar singh
(tax consultant)
(3301 Points)
Replied 13 May 2021
Rishi
(NA)
(27 Points)
Replied 17 May 2021
| Originally posted by : veerendar singh | ||
|
That advocate has clearly got it wrong.you might have to argue with him. the law is very clear, tds is liable to be deducted under 194j.
Thank you. This helped. |
|
Income Tax Wala: (Fin. Expert)
(Chartered Accountants)
(2010 Points)
Replied 17 May 2021
section 194 J of Income Tax Act 1961 is applicable and TDS @ 10% would be applicable.
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