TDS on professional fees

The rate of TDS to be deducted is 10%.

yes the rate is 10% u/s 194j

Originally posted by : N KRISHNA CHAITANYA
	The rate of TDS to be deducted is 10%.

thanks but even though he has signed a contract need to charge TDS 10% pls confirm?

Thanks, but please confirm even though the professional is under a contract need to deduct TDS @ 10%

TDS at 10% u/s 194 J is applicable.Since the nature of service rendered is professional or Technical though he/she is under contract.

TDS rate is 10% under section 194J

tds rate-10%.

tds u/s 194J.

 for ur knowledge-i wud lyk to share-

TDS is to chrgeable on the gross amount(inclusive of service tax charged).

however, no TDS shall be deducted if the professional providing services, charges any amount by way of Reimbursement of expenses chargeable otherwise otherthan by way of a contract.

regards-

abhiram

Hi if any professional or technician has been paid for expenses not reimbursment should TDS deducted on such amount paid?

Question 30 : Whether the deduction of tax at source under sections 194C and 194J has to be made out of the gross amount of the bill including reimbursements or excluding reimbursement for actual expenses ?

Answer : Sections 194C and 194J refer to any sum paid. Obviously, reimbursements cannot be deducted out of the bill amount for the purpose of tax deduction at source.

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

Thanks but an advance payment made to such professional or technician for expenses only is it advisable to deduct TDS as the details will be furnished later on

Dear Mr. Aditya

Thanks for your reply but my confusion is the advance amount is paid for meeting the expenses of company for which details will be given by the professional later on in such event need to deduct TDS pls clarify

Then do one thing that pay the advance. Afterwards when details of expenses are received book the expense and then take back the excess amount of advance if any or in case of excess expenses pay him exactly that amount. If this is done then TDS will not be deductible.

But keep that account seperate. Do not mix it in professional fees.