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Urgent query regarding tds

Sarvesh Kumar Singh (Student CA Final (Articled Asst.)) (170 Points)

11 April 2012

I want to know that whether services provided by 'PEST CONTROL (INDIA) PVT. LTD.' to a Hospital for AMC (Annual Maintenance Contract) of Integrated Mosquitoes Management Service comes under "Professional or Technical services" for the purpose of TDS or not ?

Kindly reply.

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11 Replies

DIBYENDU (SERVICE) (266 Points)
Replied 11 April 2012

It will be added u/s 194C -payment made to contractor & sub contractor and deduct @ 2% TDS

kavitha (studying final) (830 Points)
Replied 11 April 2012

194c -2 %

sivakumar (Asst Manager - F&A) (324 Points)
Replied 12 April 2012

Yes it goes to under the head Contractor

Sarvesh Kumar Singh (Student CA Final (Articled Asst.)) (170 Points)
Replied 12 April 2012

Thanks all of you for your answers but there is a doubt in my mind. kindly consider these points also while answering.

"The services provided by Pest Control of India Pvt. Ltd. includes Integrated Mosquitoes Management Service and Gold Seal Service which is generally only a techincally sound person can provide. These services are provided by the help of equipments & chemicals."

In my view due to use of technology and technicians, these services should come under technical services. Kindly advice me.

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 12 April 2012

yes...

TDS IS TO BE DEDUCTED U/S 194 C....

RETE 2%

Mihir Doshi (B.Com, CA, CS, LLB) (2187 Points)
Replied 12 April 2012

Dear,

Its a kind of AMC contract, It would require to deduct TDS in 194C @ 2% (Company).

Thanks

Mihir Doshi

CA Prakash Rai (CA) (129 Points)
Replied 12 April 2012

Originally posted by : DIBYENDU
	It will be added u/s 194C -payment made to contractor & sub contractor and deduct @ 2% TDS

merely use of complicated equipment and other specialists doesnt qualify this as professional and technical services. When deciding the nature of the contract you should look at it from the point of view of customer, as in, what outcome is he getting out of that contract. In your case the Hospital is using the services of "PEST CONTROL INDIA (P) LTD." only for the purpose of keeping its premises clean and hygenic. Howcome that amounts to technical services? If, just for example, Hospital is taking services of a particular professional surgeon for perfroming a complicated surgery, that will amount to professional & technical services.
Hope i have cleared my point.

Ritesh Jain (CA, CS in Job) (675 Points)
Replied 12 April 2012

Merely by acquiring knowledge/training/experience to use or handle a hi-tech machine or equipment doesnot tatamount to have a professional or specific skill as per 194J. e.g AMC for computer maintainence comes under 194C even in that case only a technically sound person can handle software/hardware problems. or say in case of chauffer driven Taxi contract ,in that case also a Driver(i.e who know how to drive)is having a specific knowledge to drive which also needs a training but that is not enough to categarise those payment under 194J.

Vinod Ram (C A) (165 Points)
Replied 12 April 2012

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