Quick Summary
Excluding sums paid under section 194J from section 194C (Payments to Contractors) Section 194C of the Act provides for TDS on payments to contractors at the rate of 1% when the payment is being made or credit is being given to an individual or HUF and 2% in other cases. Section 194J of the Act relates to TDS on fees for professional or technical services wherein the applicable TDS rates are 2% or 10% depending on the nature of payment being made. 2. Clause (iv) of the Explanation of sectio
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
From 1st October 2024, payments falling under Section 194J (fees for professional or technical services) will no longer be considered 'work' for the purposes of TDS under Section 194C.
This amendment takes effect from 1st October 2024.
Section 194C deals with Tax Deducted at Source (TDS) on payments made to contractors.
Section 194J relates to TDS on fees for professional or technical services.
The exclusion is being made to explicitly clarify that Section 194J payments are not 'work' under Section 194C, addressing instances where the wrong section was applied for TDS.
CAclubindia
