Tds deduction (Professional or Contractor), Income Tax

[Pradeep Kumar]

Dear all

Kindly provide the reply of following observation :

a) Company has taken the services of Salt spray test from Chennai Mettex Lab Pvt. Ltd. and

b) CMM Inspection charges

Both the expenses debited under the head of Testing charges. Are they required to deduct TDS @ 10% or 2%.

Further, any reference of law/case laws can be given then please share the same.

Regards

Pradeep Kumar

Posts / Replies

[Ganeshan Kalyani]

Professional service, TDS @ 10% applicable.

[MARIAPPAN GOVINDARAJAN]

They are coming under Section 194J of Income Tax Act, 1961 and liable to deduct TDS @ 10%.

[Pradeep Kumar]

Thanks for your reply.

Do you have any case law or any reference for such type of observation since client has opinion that such type of services can be done by anyone, so we can't assume it technical services.

Regards

Pradeep Kumar

[Ganeshan Kalyani]

I am astonished from your post. How can any one do the lab testing job. It needs special skills and qualification. The reply is rightly provided.