Tds on Professional Fees

TDS 3055 views 6 replies

A partnership Firm hire a technical person on agreement basis i.e Firm pay him consultancy fees Rs. 18500/- pm. Firm deducted TDS on it as per section 194J.

The hired person want not to deduct TDS . He told that as per his return after claiming expeses , his income is less than the taxable income. Now what we have to do ?

Whether we can take form 15 H from him on account of non-deduction of TDS ?

What is the procedure of receiving Form 15 H ? What is the treatment of it ?

Please tell

 

Replies (6)
What is the website for: 1. Income tax in India 2. Service tax in India 3. Value added tax in India 4. Central Sales tax in India
he can claim back his income by filling form 15H
Form 15H is a declaration made by an individual who is of 65 yrs and above. The better way would be ask the payee to make an application in Form No. 13 to the assessee officer for lower/no deduction of tax certificate.
Sec 194j State that if u paid professional charges more then 20000 to any body, who is liable to pay tax under this Act, then u have to deduct TDS @ 10% + surcharge (If Any)+ Edu cess. in your case 1. you are paying single amount of 18500/- which does not cross the limit. 2. if u seem that ur payment will cros this limit with in the year, then u r liable to deduct TDS. 3. but ur service provider insuring to u, that he is not liable to pay tax under this Act, by giving declaration under specific from. this form u can download from Income tax site and signature of service provider.
The case under consideration states that Rs.18500 / per month. Therefore the total amount paid exceeds the amount quoted under section 194J. My querry is whether a person can file such a form by virtue of which the TDS will not be deducted. Form 15H I am aware is used for giving to banks but whether the same can be used in other cases where the income is not taxable ??
Mr. vijay bajaj income tax website www.incometaxindia.gov.in service tax www.cbec.gov.in value added tax and cst check up in google.co.in


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