Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Tds rate

390 views

Save Share

Priyanka Bhilare

23 Points Posted on 12 July 2018

If I am paying some accounting charges / fees to some part time employee or person doing work at free lancing then what rate of tds should be applicable 1% or 10 % ( no one is professional – simply b com pass )

Replies (5)

Abhishek5g

99 Points Posted on 12 July 2018

if its salary then as per their slabs

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 13 July 2018

If you are dealing him as employee then You can deduct as per slab...

If You can't deal as employee then the fee will be accounted under "Legal and Professional Charges".

Priyanka Bhilare

23 Points Posted on 13 July 2018

but he is not a professional normal b.com pass

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 13 July 2018

As per sec 44ADA related professionals as follow;

A person resident in India engaged in following professions can take advantage of presumptive
taxation scheme of section 44ADA:-
1) Legal
2) Medical
3) Engineering or architectural
4) Accountancy
5) Technical consultancy
6) Interior decoration
7) Any other profession as notified by CBDT

Please note point number 4...
No more other ways for deducting TDS as per my 1st reply...

A B Kundu

Professional

917 Points Posted on 13 July 2018

Academic Degree of service provider is not important, whether you are getting professional service from him or not that must be looked into. If the payment made to him exceeds Rs.30,000 in a year then you have to deduct TDS U/s 194J.

And if the person is your employee then treat it as salary and deduct TDS U/s 192 as per the prescribed rules.