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Tds on freelance service

TDS / TCS 1044 views 6 replies

Hi,

Need views and answer on this.

A party is a newbie freelancer - providing services through various freelance websites. The client (for availed service of the freelancer, being a company intending to deduct TDS on the payment @ 10%.) However, this particular service being his first service (whereby his total income doesn't exceed the maximum amount chargeable to tax) and it is less than threshold limit of 30000 for 194J. 

1. Whether TDS is to be deducted on the said party by the company. 

2. If so, under which section, 194J or 194C (as this is a contractual deal- provides data entry & copy typing services)

Please give your answers with relevant provisions of act or as decided. 

Thanks. 

 

Replies (6)

1. If threshold limit is not supposed to cross during the whole year, you can request the deductor for not deducting TDS, with reference to the rules laid down.

2. Generally all such survices are considered as technical services, and hence 194J applied.

Right Sir i agree

Even if the company has deducted TDS on your payments you can still get refund back by filing ITR of respective years.

Question is whether the TDS can be avoided without it being deducted. ? 

Yes but you need to assure the company that you will not cross applicable limit and request to company for non deduction of TDS.

Hope u have read the query thoroughly. It is the freelancer whose receipt is less that 30000 - is there any amendments as to the exception on above and deduction of TDS on all freelancers regardless the payment amount made 


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