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TDS U/S 194C OR 194J ?

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CA.Pankaj Rawat

Chartered Accountant

1381 Points Posted on 18 April 2020

We have paid Rs. 84960/- (Inclusive of GST,Service accounting code.998439) for renewal of Subscripttion of Online Contents Delight plan. My query is that whether TDS will be deducted on this payment, and if yes than under which section 194C or 194 J.

Thanks

Replies (7)

Quick Summary

Payment for online subscription/content plan (SAC 998439) may attract TDS. If treated as technical/professional service, it falls under Section 194J (10%). Some view it as contract service under 194C, but majority opinion supports 194J deduction on value excluding GST.

Durga Prasad

97 Points Posted on 18 April 2020

Here subscripttion means on contract basis so 194c applies.
However online contents delight plans involves proffesional or technical services it attracts 194j.

There is a little bit confusion on which section applies.

Balaji S

Business

62 Points Posted on 19 April 2020

Accounting all its 194J professional fees only Excluding Gst amount you need to calculate on Value only

Durga Prasad

97 Points Posted on 20 April 2020

Tds under section 194j calculated without deduction of Gst.

debora M

BUSINESS DEVELOPMENT MANAGER

1697 Points Posted on 20 April 2020

As per my views section 194C relate to payment to contractors while 194J relate to fee for professional or technical servies. Thus according to section 194C "Technical in nature" means services providing manpower not consultancy. while section 194J relats to consultancy services. Technical services as per section 194J relates to expertise, or knowledge or technical know how.

U/S.194 J -Fees for technical services will have the same meaning as defined under section 9(1)(vii) explanation 2.It implies what ever amount paid for the procurement of technical service and professional service with the intervention of human element is chargeable under this section. U/S.194C- Any payment made towards a contract work including supply of labour for carrying out any work in pursuance of contract is liable.However there are some exceptions are there with board clarrifications, circularNo717 dated aug14,1995