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Urgent Help on TDS query:- professional service OR contract

M. N. JHA (CA) (8316 Points)

29 March 2011

Mr. Gyan is prfesional tutor of Accountancy. so he prvides his srevices to private coaching institutes etc. Now in this case on which rate TDS is deductable.

AND SUPPOSE

if Mr. Gyan is prvided hi services to Kohali Classes Pvt. Ltd and Raina Classe Pvt. Ltd. but there is difference, actualy mr Gyan is having a contract with Kohali Classes Pvt Ltd but there is no contract with Raina classes pvt Ltd. So now my question is this here CONTRACT will effect TDS rate or not????? and on which rate TDS should be dected by Kohali classes pvt Ltd and Raina Classes Pvt Ltd.

WHAT IS YOURS OPINION.........COMMENTS PLS

RGDS

Guddu Narayan Jha

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11 Replies

Ravishankar K (Accountant) (461 Points)
Replied 29 March 2011

It will be 10% because even though it is contract we have received professional service, even we had MOU with one party for the same situation above, we are into education and did a MOU with another company for taking classes in IT field, we deducted at the rate of 10%.

Still as even I am new in field of accounts, you please wait and get it confirmed from some expert

1 Like

CMA. Subhash Kumar Jha (General Manager - Finance) (8391 Points)
Replied 29 March 2011

In both the above cases TDS will be deducted @ 10 % under Professional services.

1st of all contract may not be in written form, it may be a verbal one, so the both cases will be under contract.

Further..professional services, even under a contract, will be taxed @ 10 % under 194J.

1 Like

M. N. JHA (CA) (8316 Points)
Replied 29 March 2011

thanks sir....................................................................

Rameshwar Mishra (self employeed) (21 Points)
Replied 29 March 2011

Sir we are work with District Health Society under various govt programme some employee are appointed on contract basis on the national health programmes. Sir we request to tds deduction of the employees appointed on contract basis is U/s 194C (Payment to contractors) or U/s 194 J (Professional and technical services) contract will be provided on 100 rs stamps

Aravind.. (CA) (1262 Points)
Replied 29 March 2011

my view is that , if he renders coaching in an institute as a contract then tds ll be deducted u/s 194C.

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 March 2011

Originally posted by : G.N.JHA
	Mr. Gyan is prfesional tutor of Accountancy. so he prvides his srevices to private coaching institutes etc. Now in this case on which rate TDS is deductable. AND SUPPOSE if Mr. Gyan is prvided hi services to Kohali Classes Pvt. Ltd and Raina Classe Pvt. Ltd. but there is difference, actualy mr Gyan is having a contract with Kohali Classes Pvt Ltd but there is no contract with Raina classes pvt Ltd. So now my question is this here CONTRACT will effect TDS rate or not????? and on which rate TDS should be dected by Kohali classes pvt Ltd and Raina Classes Pvt Ltd. WHAT IS YOURS OPINION.........COMMENTS PLS RGDS Guddu Narayan Jha

to get eligible for professional services, one has to have "certificate of enlistment", "professional tax enrollment" and if required, then service tax registration

opting under contract is sideways to avoid complications.

1 Like

Ashok (Deputy Manager (Audit)) (22 Points)
Replied 01 April 2011

I would put question differently, that in case doctor provide professional service under contract with the company, whether it is PROFESSIONAL FEES (194J) or Contract (194C)?

In the above case it should be 194J......!

Once should look at the service renderd by the person whether in capacity of professional or in other capacity.

If the services rendered in his / her capacity as professional, it could attract 194J or else 194C or other section of the Act.

Ashok (Deputy Manager (Audit)) (22 Points)
Replied 01 April 2011

I think one should deduct tax under section 194J

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 April 2011

Originally posted by : Ashok
	I would put question differently, that in case doctor provide professional service under contract with the company, whether it is PROFESSIONAL FEES (194J) or Contract (194C)? In the above case it should be 194J......! Once should look at the service renderd by the person whether in capacity of professional or in other capacity. If the services rendered in his / her capacity as professional, it could attract 194J or else 194C or other section of the Act.

if the company is in medical profession and rendering medical services to public, where the company is using the services of doctor, then its contract.

if the company has deputed the doctor for health chek up / preventive chek up of employees, and take care of them, then also its contract.

if the company has hired the doctor for an perticular case, where a perticular person (or more) has to take professional services of the doctor for certain period then only its professional fees.

in short if we visit a doctor or lawyer and pay fees, that does not limit the doctor or lawyer for whole year but for that specific visit only, thats profession, but if we hire the doctor or lawyer for time bound periods then its contract.

Bharat Khurana (Student) (153 Points)
Replied 04 April 2011

can tds return be revised of fy 2008-09 due to wrong details of pan n wat is the procedure plsssssssssssss repl urgently

raju kumar (Accounts Manager) (46 Points)
Replied 10 March 2012

Dear all

I am working at Primary Health Center under District Health Society Vaishali, Bihar. under NRHM as an accountant and some of the following staff also working on contract basis from last 5 years.

1. Doctor (Ayush)

2. ANM

3. Health Manager

4. Accountant

5. BCM

6. Data Operator

so kindly suggest me TDS shuld deduct from his Honorarim. if Yes then in which section 194C or 194J

or 192 and which rate should be applicable. Kindly suggest me its urgent koz this is last month wher TDS can deduct from his honorarium.

Regards

Raju Kumar

Hajipur, Vaishali (Bihar)

9955562967