Manpower Supply Services-Sec 194C vs 194J - Professionals - Taxation - TIK Share
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Manpower Supply Services-Sec 194C vs 194J


Heena Golani

2014-03-31

Whether TDS for Manpower  supply service  has to be deduct under section 194 C  or section J.  This depend on whether payer is paying amount as consultancy fees or amount under contractual term. If it is  paid for  consultancy fees than TDS has to be deduct under section 194 J because amount is for rendering service. If it is paid under contractual term  then TDS has to be deduct under section 194 C.

CA Pulkit Sharma

2014-03-31

Yes, the TDS to be made based on the nature of contract and service provided. If the agreement is to provide the labours, TDS will be deducted under 194C.

If the agreement is only to watch the labours or consultancy than TDS under section 194j to be deducted.

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Rahul Rai

2014-03-31

Hi Heena,

As discussed by you that TDS is to be deducted under different sections.

I have a doubt, one my client procured service from a labour contractor. The 50% fees was paid for consultancy service and rest was for utilisation of labours.

Under which section, TDS should be deducted?

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Heena Golani

2014-04-04

If In  Invoice bifurciation is given for Labour and consultancy service Fee, then TDS  has to deducted accordingly under section 194 C and 194 J respectively  . Otherwise TDS has to be deducted under section 194 C.

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Rahul Rai

2014-04-04

Thanks you very much for the reply, hope to see such nice posts from you in future also.

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