Tds Rate for Payroll processing charges

Sec 194C(1) : Any person responsible for paying any sum to any resident contractor for carrying out any work (including supply of labour for carrying out any work) in persuance of a contract between a specified person and the resident contractor is required to deduct tax at source.

Sec 194J : Professional services means "services rendered by a person in the course of carrying on a legal, medical, engineering or architectural profession or the profession of [b]accountancy[/b] or technical consultancy or interior decoration or such other profession as notifed"

Conclusion: Payroll processing do not involve supply of material or labour but it requires rendering combined pofessional services of accountants, software professionals. Hence liable to be deductged U/s 194 J @ 5% +SC+cess

Dear Mr. HARIHARAN,

When you deal wih TDS, you should take the decision with caution. Please note, some one has written to you that it is u/s. 194C  and the another freind has written that it is u/s. 194J.

To be safe from litigation  at  later  stage, you deduct TDS u/s194J. Suppose, if you deduct  the TDS U/S. 194C &  assuming  that, at later years, department  proves that it should be u/s. 194J, your expenses will be dissallowed under section 40(a)(ia) for the short payment of TDS u/s.194J for that year, which will be a  big financial loss.

Further, if you deduct  at higer side (in case of doubt/confusion only) (i.e. 5%+ s.c.+cess  instead of 2%+s.c.+cess), neither you nor deductee will loose any thing.  

Hence, I request you and all to deduct the TDS at higher rate,specially in case of doubt & confusion, to avoid litigation and dissallowance.

Thanks & Regards

MANJUNATH

What should be the TDS rate on profeesional service (194J)?. I am lil confuse on 10.30% and 11.330%. The bill amount is 181440.00/-

It should be 10.30% if Gross amout paid during the year is less than 10 Lacs and if payment made to Individual. otherwise 11.330%

PLEASE SEND ME THIS tds RATE FOR PAYROLL PREOCESSING CHARGES

We are engaged in Telecom Services. We are having MOU with one LTd company to provide Internet service which cost us Rs.1.50 lacs per month. Is the Internet Service comes under Technical Services U/s. 194 J? Is it necessary to deduct TDS?

Hi Please send my the same tds rate for payroll proeocessing charges

Since Individual Income Tax liability isconsiderably reduced in 2008-2009, are there any changes proposed for TDS rates as well as threshhold amount...?

Originally posted by :Guest
"	PLEASE SEND ME THIS tds RATE FOR PAYROLL PREOCESSING CHARGES	"

 

Dear sir,

               We have to pay Rs 8000/- to Our Union Cunsultant. so pls make me clear that at what rate i have to deduct TDS and and in which head .

 

Regards

N Pathan 

       

Hi,

Pls send me the  details about how to process the salary in manually.

please forward the details of vat in andhrapradesh

 

please forward information of slab rates of salestax which is to be short

Originally posted by :Pradeep Gupta
"	if we pay to an amount towards Processing Fee or Upfront payment then any liabitilies of TDS on such amount & which rate????????	"

 

Originally posted by :Pradeep Gupta
"	if we pay to an amount towards Processing Fee or Upfront payment then any liabitilies of TDS on such amount & which rate????????	"