TDS on Professional Fees

Anil

it is totally depends on the nomenclature of terms & condition defined in the contract.

But normally it is covered under 194C not under 194J ........

Intererior decorator's work is mainly work done on the basis of specification given by the party. this means there is a contractual relation between the party and interior decorator. Hence, TDS u/s 194 C shall apply.

regards,

ratan

I beg to differ with Ratan. Interior decorator is a specified profession u/s 44AA. It is a professional payment and deduction is u/s 194J if design work and consultancy is involved. If the interior decorator would fall under definition of purely a contractor doing contract of construction, then only apply 194C.

I remember when Service Tax was just started on interior designers under engineering consultant category, the contractors doing the construction part like painting etc. were excluded. The electrician doing wiring work was excluded but the person doing designing and consultancy of electricals was included.

It is better to first see how the item is billed. If there is any element of consultancy in it safer to deduct u/s 194J. The test for income tax would be same as for what service tax used to do.

Between 194C and 194J also study the advertising agency or media as 194C and the advertising consultant or model or designer as 194J. This same test would apply.

Dear Anil

i aggree with mr. saurabh gupta,

its totaly depends upon nature of work & Aggrement.

Int. Decorator fall u/s sec 194-C not other.

Pl. check this attached file.

send me the check list for secretarial audit report

Thanks Deepika.

Although paying interior decorators is not my subject, I somehow felt that 194 J was correct for cases where consultancy is involved.

What people keep confusing is they call your house painting contractor or furniture making contractor an interior decorator. He is not an interior decorator but has somehow got generalised as one.

If the interior design work descripttion( Just a Quotation) is given and work is in process .

TDS is deducted as per sec 194J

If after paying the TDS amount - The bill raised for different amount then what is the procedure?

Please reply if you are confident

Thanks ,

Shivani

If The decaration bill was not segregated for service amt. for which amount tds will be deductible