Tds on placement service

Originally posted by : Bhavesh C. Vyas
	I want to know whether Staff Provided by the Placement Agencies comes under the purview of "Professional Services" or under the Purview of "Contract Act" Please Explain in detail.

Payments to recruitment agencies are in the nature of payments for services rendered, and hence will be subject to TDS under section 194J of the Act, and not under section 194C of the Act.

Circular : No. 715, dated 8-8-1995.

Originally posted by : |)eep @ k Gupt/\
	Originally posted by : Bhavesh C. Vyas I want to know whether Staff Provided by the Placement Agencies comes under the purview of "Professional Services" or under the Purview of "Contract Act" Please Explain in detail. Payments to recruitment agencies are in the nature of payments for services rendered, and hence will be subject to TDS under section 194J of the Act, and not under section 194C of the Act. Circular : No. 715, dated 8-8-1995.

Agree with Deepak....

Placement services coverd as professional service hence tds shall be deducted u/s 194J.

194 J, as explained by previous experts