My cousin is a fitness trainer and provides training in a gym, or client's place or even on Zoom.
Sometimes, clients deduct TDS. So far whoever has deducted has done it at 10% under 194J.
However, this week a client said that since the payment was for multiple sessions over many months, then it should be considered a contract and TDS deducted at 1% under 194C.
I understand it is the client's problem if they deduct wrong TDS, but does this logic make sense? Some clients who are not sure have asked about the rate of deduction in the past and we have always said 10%. But can we suggest 1% to any clients?
CAclubindia
