TDS on General Management fees

3714 views 7 replies

Please help,

I'm doing an audit and i have come across the fact that the company is paying management ffes to its holding co. TDS on the same has not been deducted. is it fine or shud they deduct TDS, if so under which section.

Thank you

Tushar Singhania

Replies (7)

WHAT TYPE OF MANAGEMENT YOU ARE ASKING FOR ,WHETHER ANY SERVICE IS TAKEN FROM HOLDING COMPANY THEN IT COME UNDER SEC 194C OR 194J DEPEND UPON TYPE OF SERVICE

Mr. Valji

this general management services, depositing money/tax/duty etc. on behalf of the subsidiary. Its not proffessional, as nothing proffesional is involved,  194c is for contractor

it is a not a professional service but company are provide regular service whether agreement is made or not for this service

so it may come under sec 194c

TDS SHLD HVE TO BE DEDUCTED UNDER SEC 194C N NOT 194J AS THERE IS PRF SERVICE REC AS MENTIONED U/S 194J.

TDS to be deducted under section 194C

we made contract with customer but he give us bill as management fee... now my clarification is it is contract or professional fee

contract for what? If it is in the nature of Professional or technical  then adopt 194 J ..and if the nature of contract is difficult to identify then better is to deduct at high rate ie adopt 194 J .. 

 

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