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TDS on professional

ashish gupta ( student) (1922 Points)

09 November 2011

Whether TDS should be deducted from a professional on account of bill raised for the payment of prescribed fee to various authorities on behalf of client and he does not charge anything extra from the client in his bill

Thanks !

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14 Replies

Rachit (Analyst) (913 Points)
Replied 09 November 2011

Fees / charges paid to various authorities on behalf of the client amounts to reimbursement of expenses. Such reimbursements do not attract the provisions of Chapter XVII of the I.Tax Act

1 Like

valji (Accounts manager-MBA) (2150 Points)
Replied 09 November 2011

reimbursement of expenses do not attract TDS if supporting attached

VIKAS GUPTA (CA-FINAL) (56 Points)
Replied 09 November 2011

Rachit Please Clearify

This is not reimbursement of expenses. it is payment of professional charges on behalf of Client

ashish gupta ( student) (1922 Points)
Replied 09 November 2011

and whether TDS is applicable on fee paid to attend seminar/meetings of industry updates.

VIKAS GUPTA (CA-FINAL) (56 Points)
Replied 09 November 2011

Yes TDS also Applicable if fees paid to attend seminar/meetings more then 35000/-.

ashish gupta ( student) (1922 Points)
Replied 09 November 2011

in which section ??

VIKAS GUPTA (CA-FINAL) (56 Points)
Replied 09 November 2011

U/S 194J (Receiving Professional or Technical Services)

ashish gupta ( student) (1922 Points)
Replied 09 November 2011

please dont mind but can you explain it more how can it be covered under 194J. I am not saying that you are wrong but I am not sure about it.

VIKAS GUPTA (CA-FINAL) (56 Points)
Replied 09 November 2011

If Seminar provide any update related to Production facility, New Technolocy ect, then it is a Technical service and as per Sec 194J "As Person except Individual or HUF who is resposible for paying to a resident any sum by way of Professional or Technical Service shall Deduct 10% if amount of service more then 35000"

1 Like

Rachit (Analyst) (913 Points)
Replied 10 November 2011

Originally posted by : VIKAS GUPTA
	Rachit Please Clearify This is not reimbursement of expenses. it is payment of professional charges on behalf of Client

In case of such an arrangement, I am of the view that it would be prudent for the said professional to deduct TDS from payments made to the other professionals, for services sought on your behalf. The same may be subsequently claimed as reimbursement from the client without any TDS deduction.

CS Bijoy (Expert) (6394 Points)
Replied 10 November 2011

Accordig to me the service provided is covered under the service tax and not under the TDS.

CMA.Baskar.V (Cost Accountant) (400 Points)
Replied 10 November 2011

Dear Mr.Bijoy,

Pls understand Service Tax charged on service by service provider and they will collect service tax from us and remitting to Central Govt . But, TDS has to deduct by service receiver from the total bill value and remit to Govt.