Hi,
What would be the rate of deduction of TDS for payroll processing charges to be paid to an outsourced consultancy firm. Would deduction be under Sec 194C or 194J??.
Pls suggest.
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Tds Rate for Payroll processing charges
Replies (8)
I think it should be under 194C ie. @ 2.244% or 2.04% whichever the case may be.
Regards
Viral Popat
Regards
Viral Popat
TDS u/s 194C as it is contract for work . Not u/s 194I as this section do not cover work but only consultancy.
Hi
It must be @ 10 % plus SC plus Ec as the rate applied u/s 194 j for a consultancy firm.
regards
Puran
Hi,
It is depend upon your contrct if u r mentioned that u hired them as a consultant then rate will be 11.33% otherwise 2.27%
Regards
Rachana
10 % surcharge plus education cess
TDS u/s 194C is applicable as it is contract for work
So Rate of TDS is 2%+SC+Cess
So Rate is 2.266% for companies having profit in excess of 1 crores.
i think rate is @ 10+sc+educess u/s 194j.......
194c is for conractors
194j refer that professional charges that include prosessing charges
though it is outsourcing consultancy firm, the payment is for contracts, under 194 c, the rate is 2%+sc+ed.cess
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