Tds on remuneration to teachers for correcting answer script

This does not fall in Income Tax Act as well as Service Tax Bcoz payment is so small without billing as per TDS provision under Section 200 & Section 201 of Income Tax Act.

It depends on how the transactions are being recorded in Books Accounts of the University, like Contract or Professional Charges. Pls. let us know the details.

I do not believe there is any contract. From an individual teacher's point of view, he just fills a bill-cum-receipt and gets money more as an incentive. The teacher does not have freedom to specify his charges or say in any terms of payment. He just has to take what he is given.

Whatever deductions I have seen are accompanied by a Form 16A with 194(x) sub-section. I did not find relevant one and ceilings seem to be on higher side. In this case payment is in hunderds and generally not exceeding couple of thousand rupees.

Even if income is taxable, would it attract TDS is the question.

I do not believe there is any contract. From an individual teacher's point of view, he just fills a bill-cum-receipt and gets money more as an incentive. The teacher does not have freedom to specify his charges or say in any terms of payment. He just has to take what he is given.

Whatever deductions I have seen are accompanied by a Form 16A with 194(x) sub-section. I did not find relevant one and ceilings seem to be on higher side. In this case payment is in hunderds and generally not exceeding couple of thousand rupees.

Even if income is taxable, would it attract TDS is the question.

To my opinion the charges being paid to teachers can be considered as Professional Charges and Section Code is 194J and the rate shall be 10%.

However, TDS deduction to be made on the amounts which crosses the slab of Rs. 30,000 in the whole year per individual.