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Tds u/s 194j

A K SARMA (SERVICE IN PSU (OIL & GAS)) (166 Points)

30 March 2012

It is requested to clarify, TDS Applicability under section 194J in the following cases

(1) Amount paid for Services provided by a Masterchef or a Head cook of a Star hotel to outsiders other than within the hotel premises for a consideration.

(2) Amount paid to a Sports person for participating National or Internation Championship. (the amount paid is for sponsorship)

kindly advise

regards

A K Sarma

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2 Replies

nitin suvarna (C.A FINAL) (828 Points)
Replied 30 March 2012

acc to me , i understand that there is some kind arrangement or agreement of contract . i see both of such transactions in the nature of contract.definitely in the second one the person is not delivering prof services.........

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 04 April 2012

Circular Number 715 dated 8-8-1995 made it clear that the agreement of sponsorship of debates, seminars and other functions in school/college/associations is in essence an agreement for carrying out a work of advertisement and provisions of section 194C applies. hence TDS @ 1% is requried to be made if pymt exceeds Rs. 30K & in aggregarate exceeds Rs. 75K

TDS u/s 194J shall be requried to be made as teh Master Chef is providing professionla service by applying his own skill. Hence TDS @ 10% shall be requreid to be made.