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TDS rate on liasioning

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Yashmita deshlahra

Student

36 Points Posted on 12 September 2019

at which rate liasioning charges TDs needs to be deducted

Replies (2)

Quick Summary

Liaisoning charges are generally treated as professional or consultancy services. Hence, TDS is applicable under Section 194J at 10%. However, exact applicability depends on the nature of services provided under the agreement.

Kapadia Pravin

17269 Points Posted on 12 September 2019

Liasioning charges in the form professional or consultancy, management etc - then TDS @ 10% under 194J.

Guest

The applicable TDS section on liaisoning charges depends upon the nature of services rendered.

If the liaisoning work involves consultancy, representation before authorities, coordination, advisory or specialized professional expertise, TDS is generally deductible under Section 393(1) [earlier Section 194J] at 10%.

However, where the payment is for execution of a contractual assignment without professional or consultancy elements, TDS may be deductible under Section 393(1) relating to contractor payments [earlier Section 194C] at 1%/2%, as applicable.

Therefore, the agreement, scope of work and invoice descripttion should be examined before deciding the correct TDS section. In most practical cases, liaisoning charges are treated as professional/consultancy services and TDS is deducted at 10%. - Setindiabiz