Experts,
1. We are going to avail the professional service from foreign country.
2. For that we are paying the advance amount (60℅ of the total transaction value) by converting USD into INR.
3. This amount will be getting credited into their branch account, which is located in Mumbai.
4. My Query :
a. Whether TDS under section 194C will attract for this transaction
or
b. 194J TDS on professional service will attract.
Pl clarify.
Application Of Section 194C
The provisions outlined under Section 194C of the Income Tax Act are only applicable to either
- Works Contracts
- Labour Contracts
However, it is not applicable to any contract that deals with the sale of any goods or solely the supply of any goods or products. 194 c is applicable to only resident contractors.
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