TDS Problem Related to Section

Manoj, IT dept does not issue certificate to anyone saying "this is the work done so TDS is attracted under ___". They only give certificates for lower deduction of TDS or certificate for non deduction.

Auditor's Demand is not false, its outrageous and frivolous:p

As balaji has pointed out, enganging people to work at your premises is only a stipulation in the contract, and TDS should be attracted u/s 194C only

To settle the issue, just tell the auditor that there is no professional and technical service rendered to you

Tell them to refer explanation to 194J for clarification, which i have just given below

Explanation.—For the purposes of this section,—

(a) “professional services” means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes of section 44AA or of this section; NO PROFESSIONAL SERVICES HERE

(b) “fees for technical services” shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;

For (b) above, here u go

For the purposes of this clause, “fees for technical services” means any consideration (including any lump sum consideration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head “Salaries”.

See this  - It should solve.....

Routine,normal maintenance contracts which include supply of spares will be liable to TDS U/s 194C. However, where technical services are rendered,TDS will be u/s 194J. Ref:- Circular No 715 reported in 215 ITR (st)17- vide question no.29.

Source for last arguement - from a very reliable expert in caclub....

/experts/whether-tds-deductible-on-repairs-maintenance-of-machinery-163226.asp#88306

Dear G.K.

Nice Reply and correct reply. Good Keep it up

In my opinion TDS @ 2% should be deducted as it a contract for repair ,maintenence & operation of AC plant.... 

Correct Mr.GK

It will fall under 194C only not under 194J

IT will fall Under 194 C

I think u should clear with auditor that how can be the tds deduct under as a profession. but it's not a profession, it's a contract between both the parties. so it should be deduct under section 194C

hi

hiiiiiiii

THANKS FOR ALL YOUR VERY HELPFUL INFORMATION.

here, I also have a query.

Our society is charging a very large amount on providing Operation and Maintenance services.

I am confused that it will liable to TDS or not.