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TDS under 194J or 194C.??

Saurabh N. Nyati (Asst. Manager - Audit) (170 Points)

03 June 2011

On 'Testing & Inspection fees' paid by company, tds should be deducted under 194J as "Professional fees" or under 194C as "Contractor".?

As per my opinion, it should be 194J as it is done by technical experts & certified by them. But the company is considering it as regular process & wants to deduct tds u/s. 194C as Contractor. Plz suggest related case law (if any) for supporting the stand.?

Also on 'Conference Expenses' paid by company to Hotel, which incl. charges for hall & some other charges like water, TDS to be deducted under 194C on whole amount or not.?

Is tds to be deducted on repairs & maintenance charges in all the cases under 194C.?

Regards,

sKY....

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9 Replies

SATYABRATA PANIGRAHI (ARTICLE) (53 Points)
Replied 03 June 2011

Hi Saurabh....TDS to be deducted On 'Testing & Inspection fees' paid by company' is under Section 194J . It is a technical job done by the agency. Besically for these type of services agency employ Engeeners & Proffessionals expert in that technical area.

SATYABRATA PANIGRAHI (ARTICLE) (53 Points)
Replied 03 June 2011

For Conference charges if the hotel has charged Service Tax on whole bill then TDS to be deducted on whole bill amount excluding ST. If VAT has been charged on other materials then no TDS on that material to be deducted............ as those will be sale of goods by Hotel.

SATYABRATA PANIGRAHI (ARTICLE) (53 Points)
Replied 03 June 2011

Yes TDS to be deducted is U/S 194C

Saurabh N. Nyati (Asst. Manager - Audit) (170 Points)
Replied 03 June 2011

Originally posted by : SATYABRATA PANIGRAHI
	For Conference charges if the hotel has charged Service Tax on whole bill then TDS to be deducted on whole bill amount excluding ST. If VAT has been charged on other materials then no TDS on that material to be deducted............ as those will be sale of goods by Hotel.

But when tds is deducted U/s. 194C, it is to be deducted on whole amount incl. Service tax. I think it is case tds on Rent U/s. 194I, where tds is to be deducted excluding Service tax & not U/s. 194C.

N yes, ur right; where in case of VAT is charged on material, there will be No tds on the same.

thanks 4 reply.

Deepesh Khatri (CA) (167 Points)
Replied 03 June 2011

For Testing and Inspectin Fees - TDS under 194J - CIT v. Bharti Cellular Ltd. (2009) 319 ITR 139 (Del.)

For Conference Expenses - TDS under 194C on gross amount charged.

For Repairs and Maintenance - Applicability of TDS will have to be seen on case to case basis. While repairs and maintenance in the form of AMC will be covered u/s 194C; repairs and maintenance of software on per service basis shall be charged u/s 194J. There can be more scenarios.

Saurabh N. Nyati (Asst. Manager - Audit) (170 Points)
Replied 06 June 2011

Originally posted by : Deepesh
	For Testing and Inspectin Fees - TDS under 194J - CIT v. Bharti Cellular Ltd. (2009) 319 ITR 139 (Del.) For Conference Expenses - TDS under 194C on gross amount charged. For Repairs and Maintenance - Applicability of TDS will have to be seen on case to case basis. While repairs and maintenance in the form of AMC will be covered u/s 194C; repairs and maintenance of software on per service basis shall be charged u/s 194J. There can be more scenarios.

thanks Deepesh.. Also can u plz upload the details of case "CIT v. Bharti Cellular Ltd. (2009) 319 ITR 139 (Del.)" mentioned by you othrwise wer can i get the details of the same.? Plz tell me.

Saurabh N. Nyati (Asst. Manager - Audit) (170 Points)
Replied 06 June 2011

Originally posted by : Deepesh
	For Testing and Inspectin Fees - TDS under 194J - CIT v. Bharti Cellular Ltd. (2009) 319 ITR 139 (Del.) For Conference Expenses - TDS under 194C on gross amount charged. For Repairs and Maintenance - Applicability of TDS will have to be seen on case to case basis. While repairs and maintenance in the form of AMC will be covered u/s 194C; repairs and maintenance of software on per service basis shall be charged u/s 194J. There can be more scenarios.

thanks Deepesh.. Also can u plz upload the details of case "CIT v. Bharti Cellular Ltd. (2009) 319 ITR 139 (Del.)" mentioned by you othrwise wer can i get the details of the same.? Plz tell me.

Krishna Chandgothia (Accounts Executive ) (26 Points)
Replied 10 June 2013

A Softwaew Company reaised a combined invoice as Software Charges & repair & maintenace charges for mainting the software Rs. 1,40,000/- & Software Chrges Rs. 2,00,000/-, kindly advice me TDS is deducted on which amount