ABC limited provides computer maintenance service to XYZ limited and charges AMC (annual maint. charges) every year.
now the question is - whether XYZ ltd. will deduct the TDS u/s 194C (because there is a contractual agreement between them), or u/s 194J (because it is a professional / technical service) ?
Maintenance contracts - Routine maintenance contracts including supply of spares would be covered under section 194C. However, where technical services are rendered, the provisions of section 194J will apply in regard to tax deduction at source—Circular : No. 715, dated 8-8-1995.
Thanks sir
under section 194C.
regards,
Manoj
CAclubindia
