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Tds on professional fees

NIKITA ARORA (46 Points)

11 December 2019

If NRI pays professional fees of Rs.2laca to resident then tds is deductible u/s194 J or not?

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7 Replies

sanjith kotni (Articled assistant) (663 Points)
Replied 12 December 2019

Yes 194J is applicable for every one whether resident or non resident deductor but the payee should be resident

NIKITA ARORA (46 Points)
Replied 12 December 2019

Then how can NRI deposit TDS deducted? If he dont have TAN.

Prince Parashar (52 Points)
Replied 12 December 2019

Apply for TAN and application has to given in form 49B within one month from the end of the month in which tax was deducted for the first time u/s203A

CA Arun Tiwari (Partner) (4230 Points)
Replied 13 December 2019

Sec 194j states that a person is required to deduct TDS @ 10 percent when payment by any person(other than Individual or Huf who are not required to get conduct their audit) to the Resident in excess of 30000 during a financial year for the professional services.

This section does not clearly specify Resident or Non-resident for the status of deductor as it states Any person.

So accordingly NRI will deduct TDS on the payment of professional fees of Rs. 2 lakh @ 10 percent.

please do read our blogs on taxes and TDS