TDS u/s 194J

Dear group members

Hi every body

Can any one guide me in the following matter

One of my client is hiring data entry operatiors from a Private Agency. These data entry operator are on roll with that Private Agency only. This Private Agency is billing my client for the salary of the data entry operator and their commission for rendering such services. Now the question is, whether TDS u/s 194J has to be made on the entire bill or only on the portion of commission charged by the Private Agency. As per the circular no. 715/1995 if a seperate bill is raised for reiumbursement of expenses, then no need to make TDS on such bill.  Whether the same is applicable in my client's case if that Private Agency raises two seperate bills i.e. one for reiumbursement of salary paid to data entry operators and another bill for commission charged by the Private Agency.

Thanking you

Awaiting for your guidence

 

 

Replies (6)

You need to deduct TDS on the entire amount.

The circular is not applicable in this case.

I think it is better if u ask the client to give u two seprate bills as TDS is applicable on bill amount.


 

Salary is the reimbursable expenses so on those amounts tds should not be deducted, TDS should be deducted on only on Commission.

On the other hand if the clint bill u as a contractor than u should deduct on hole amounts as a contractor rate as per section 194C

Thanks

Abhash

You should deduct TDs on full amount of contractor bill.

 

of course on whole amount and asper sec 194j ie, 10% plus sc and ec

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