TMI BlogTDS U/S 194C OR 194X X X X Extracts X X X X X X X X Extracts X X X X ..... DEAR Experts, Under a contract, following services are provided by a a professional consultancy firm A : A) Supply of 2 full time Consultants to a Client who shall be located at client premises at all times however be on payroll of firm A. Client shall pay Cost to A plus 10% in exchange of such manpower supply. B) Supply of offsite consultancy to the same client. Under contract, separ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate consideration of both 2 works is specified. Whether it shall be permissible if client deducts TDS u/s 194C on manpower supply portion and TDS u/s 194J on offsite consultancy portion? If yes, kindly refer to any precedent/judgment in support. - Reply By Amit Agrawal - The Reply = Dear Shri Rohit Goel Ji, First a big disclaimer : I do not deal in income tax matters at all. Hence, ple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase treat this strictly a friendly pointer/s on broad basis, purely based on general understanding of taxation laws in India. In such type of contract, it is essential to see whether they are - in essence - one singular contract or actually, two separate contracts which are independent of each other. One needs to see entire terms conditions, scope of work, responsibilities obligations etc. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o arrive at any conclusion. In case of former, essential ingredients of the entire contract (i.e. principle supply, using GST analogy) will determine single applicable TDS sub-section for entire consideration. And in case of later, nature of services covered in each of two parts of the contract determine applicable TDS sub-section for each part separately. Having two separate consideration doe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not necessarily proves or event points to that it is two separate contract. As a matter of act, even having two separate contracts - by itself - does not necessarily proves that it is two separate contract. If a singular contract is artificially bifurcated into two contracts without any logical justification reasoning so as to reduce applicable TDS rate/s, Dept. / court will see through it. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... And if so, essential ingredients of the entire contract (i.e.two contracts read together) will determine applicable TDS sub-section. These are strictly personal views of mine and the same should not be construed as professional advice / suggestion. - TDS U/S 194C OR 194 - Query Started By: - ROHIT GOEL Dated:- 15-7-2022 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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