Which TDS section Applicability - Education support services

The assessing officer considers conducting a service for placement for students abroad for education as a consulting service. But what he doesnt seem to be understanding is there are a whole gamut of services being given here which includes ticket, VISA processing, college admission etc.

Question is under which category of TDS would this apply. Would it be a contract 194C or professional service as consultation under 194J? And how can I as an assessee argue this with the officer?

This impact many students who get unncessarily burdened with such tax cost.

Replies (2)
Quick Summary
This discussion addresses the correct TDS section for education support services, such as student placement abroad. The assessing officer initially considered it a consulting service, but the services encompass a broader range including ticket processing, visa assistance, and college admissions. The consensus is that these bundled services, requiring professional expertise, fall under Section 194J as advisory and consultancy services. Even ancillary services like ticketing are covered under this section, as supported by CBDT Circular No. 715.

Services for Student Placement Abroad are generally offered as a bundled package, covering a wide range of support such as placement assistance, admission and application guidance, visa preparation, guaranteed admission to partner institutions, ticketing, etc. Rendering such services requires specialized professional knowledge and expertise, and therefore falls within the ambit of advisory and consultancy services. Accordingly, the entire package would attract TDS under section 194J.                                                                                                                                                                                                                          Ticketing, though contractual in nature, being ancillary to the main consultancy service, is also covered under the same section.                                                    This categorization is supported by CBDT Circular No. 715 dated 08.08.1995, which provides clarificatory guidance.

thank you for the reply. will check the notification.

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