If we pay Rs.22 K every month to a company for outsourcing their employee as a full time resource to work at our company. Do we have to deduct any TDS under Sec 194J ?
It is a 1 yr contract and the other company pays Rs.20 K as salary to the employee and remaining 2000 is towards ST.
Please Assist.
i think is should be covered under the section 194C & all limits of the same section will accordingly apply
sunil
Dear Jaikiran,
In this case TDS will be deducted u/s 194 C...
TDS will be deducted U/S 194 C
How to adjust if we had not deducted TDS for the pymnts already made. Will it be a problem if we deduct the total TDS to be deducted in an year in one single pymnt.
Dear Jaikiran,
Yes if u have not deducted TDS earlier u can deduct it from the remaining payments..
Interest @ 1% per month has to be deposited along with the TDS for the period of delay.
You can deduct tax now in future payment if you fail to deduct earlier............you will have to pay interest on late payment from your pocket..........and also to file quartely return or if filed revised it...........
Also take care that TDS to be deducted on whole amount i.e. including service tax.
194 C will apply
It is advisable to deduct TDS on each and every bill. Otherwise there would be levy of interest on delay in TDS deducted
Are u 100% sure that it comes under 194C only, will it not come under 194J as actually a skilled professional is taken in this case and also it is not a 1 time contract work pymnt. It is a regular monthly pymnt. I'm in a doubt, kindly assist.
Dear Jaikiran,
In your case according to me it can be considered under 194C and 194J:
1. For 194J the person or firm from whom you are taking this service should be a consultancy/professional firm.
2. If they are just providing you the contract for this service and they themselves doesnt have any profesional or consultancy work then it should be considred under 194C.
| riginally posted by : Shudhanshu | ||
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Dear Jaikiran, In your case according to me it can be considered under 194C and 194J: 1. For 194J the person or firm from whom you are taking this service should be a consultancy/professional firm. 2. If they are just providing you the contract for this service and they themselves doesnt have any profesional or consultancy work then it should be considred under 194C. |
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It is a software company whose main area is not consultancy but software development. So do I have to treat it as a professional firm?. Will be thankful for a little more confirmation.
Dear Jaikiran,
In this case if the employees which are outsourced are related to software development then it willl be considered under technical services which is again considered under section 194J.
Do I have to deduct Surcharge & Cess on pymnts made till Sep'09?. If yes then when is surcharge applicable, is it when my total pymnts to that firm cross 1 Crore or in the case when the firm's total turnover is above 1 crore?
Kindly assist.
CAclubindia
