TDS Deduction

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... TDS Deduction
Query (Issue) Started By: - siddharth desai Dated:- 11-5-2018 Last Reply Date:- 15-5-2018 Other Topics
Got 4 Replies
Indian Laws
i m working on an annual cotract with an MNC. my monthly retainer fees is inr 200,000 + 18% GST. company's taxation department is pressing for 10% TDs deduction under section 194J wherin all these years, my previous companies has always ded .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ucted 2% under section 194C. my nature of work is providing them with techincal man power to make creative artworks. need some expert opinion / clarity on what shud i do Reply By DR.MARIAPPAN GOVINDARAJAN: The Reply: TDS under section 194C is for works contract and under section 194J is for professional services. Your fees amounts to professional services and therefore the contention of the taxa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tion department is correct. Reply By YAGAY and SUN: The Reply: In our view it should be 10% as you providing technical/creative artworks as a professional. Reply By YAGAY and SUN: The Reply: 2018 (5) TMI 850 - ITAT MUMBAI ACIT (LTU) -1, Mumbai Versus M/s WTI Advance Technology Ltd. (Now merged with Tata Consultancy Ltd.)TDS u/s 194C OR 194J - scope of work of the contracts entered into by the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... assessee with the parties/contractors - tds liability - TCS had entered into an agreement with the assessee company for creation of Geographical Information system in the State of Maharashtra and Gujarat - Held that:- As the payments made to the vendors for the work done by them by deploying semi-skilled personnel, did not involve any technical or professional knowledge on their part, the same co .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... uld not be brought within the sweep of Sec. 194J and had rightly been subjected to deduction of tax at source by the assessee under Sec. 194C. We thus being of the view that the assessee had correctly deducted tax at source on the payment made to the vendors, therefore, no disallowance under Sec.40(a)(ia) as regards the same was liable to be made in the hands of the assessee. We thus finding no i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nfirmity in the order of the CIT(A), uphold the same in context of the issue under consideration.- Decided against revenue Reply By Ganeshan Kalyani: The Reply: In my view , TDS is deductible @2% under 194C.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X