Tds on contract / professional fees on event expenses.

deduction under section 194J is not correct

Hello Soumya,

Deduction u/s 194J is only done when the same payment is made to a professional, the professional has been defined in Income Tax Act which include persons like Architect, CAs, Doctors,etc. However in your case there is a regular contract with tent person though he ius providinga service and is liable to service tax but nt being covered under the definiton of professional deduction shall be made u/s 194 C and not 194J

If TDS provisions are  applicable on your business/activity then
TDS will be deducted under section 194C, in following manner
if the recipient is individual/ Huf .......................................Rate ..... .1%
if the recipient is other then individual/HUF ...................Rate.........2%

But My CA is saying to deduct TDS @ 10% as he is providing services.

I told him if i make contract agreement copy then it may comes to 194C.

But my CA denied.

The deinition of profession is as under

professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising.

Please discuss sec 194J with your CA, head definiton of profession

Soumya ji,

I agee with CA Saurabh Singh

Under section 194C, 1% and 2% rates have been  prescribed by department.
I think, you CA has suggested you to deduct under section 194I (for Rent) i.e 10%
In this case TDS is subject to deed/agreement or any other documents

Thanks to all.

194 C is correct answer becuse tant house not provid any consultation

IN THIS CASE 194 (C) IS APPLICABLE

dear all

If its Cinema Tent,  building in nature and a asset  can be under rental will attract @ 10 %