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Tds on sub consultancy

TDS / TCS 943 views 1 replies

 

A company has hired a tecnnical consultant Mr A, for Rs 180,000/-. Mr A in turn hires Mr B for getting some part of the work done for Rs 80,000/-. Now the company will deduct TDS on payment of Rs 180,000/- to Mr A  under 194 J , 
My question is, 
1) Does Mr A have to deduct TDS on payment to Mr B and if so under which sec 194J or 194 c , as Mr B is a sub consultant
2) Since Mr A is an individual and this being his first consultancy does he have to apply for TAN
 
Thank you
Replies (1)

In case of sub-concultancy,  TDS is requried to be made u/s 194J only,  as there is no contract involved in such case.  The sub-consultant is providing profesional services by applying his personal skills, so section 194c does not comes into picture.

Mr A will be requried to make TDS in the current eyar, if Tax Audit was applicable him in the previous year.  If not then he need not apply for TAN & make TDS.


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