What is threshold limit for TDS 94j?
Rs 30,000 per annum
Section 194J stated that any person who is paying fees to any resident person for specified services, then TDS is required to be deducted u/s 194J. However,TDS is to be deducted when amount of payment in a year exceeds Rs. 30,000/- at the rate of 10%.03-Aug-2022
What is 194J A & 194J B?
(i) Section 194J(A) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Technical Services. (ii) Section 194J(B) of the Income Tax Act is related to TDS deduction on any sum paying as fees for Professional Services. 4. Distribution or exhibition of cinematographic films.28-Aug-2021
194j TDS Rate. According to the rules and regulations of Section 194J of the Income Tax Act, 1961, a person must deduct their Tax Deducted at Source (TDS) only at the rate of 10% when certain payments are made to a certain resident.
What is the difference between 194C and 194J?
Answer : Routine, normal maintenance contracts which includes supply of spares will be covered under section 194C. However, where technical services are rendered, the provision of section 194J will apply in regard to tax deduction at source.
u/s 194J(a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J(b) of the Income Tax Act is related to TDS deduction on fees for Professional Services.23-Nov-2021
What is technical service fee?
Fees for Technical Services (FTS) have been defined in Section 9 itself under clause (vii) as any consideration (including lump sum) for rendering of any managerial, technical or professional services including the services of technical or other personnel.
TDS is required to be deducted @1% on the whole amount as the total payment in the year exceeds Rs 75,000. Example 2 – In the above example if the contractor A is a Partnership Firm in place of individual. TDS is required to be deducted @ 3% as the sum exceeds the threshold limit of Rs 30,000 in single payment.
What is the difference between professional and technical services?
Professional services – Services of doctors, chartered accountants, tax consultancy services, project monitoring services etc. Technical services – Computer development software, Bio technical services, geological and scientific services etc.12-Jun-2020
The Threshold Section 194J Under TDS
What if TDS is not deducted on professional fees?
Delay in Deduction: If a person fails to deduct TDS on professional fees then he is liable to pay interest at the rate of 1% per month or part of a month.
The Internal Revenue Service allows you to deduct any dues that are required by your profession, such as bar dues or membership fees to a professional or trade organization, from your taxes. If you are self-employed, you may take the full deduction.
What is a professional fee?
A professional fee is a price paid in exchange for receiving professional services. A talented professional is someone who is skillful in his or her industry. Any expert who provides specialized services, such as a barrister, auditor, educator, surgeon, physician, or engineer, can charge customers.
Section 194C deals with the provisions for tax deduction at source at the time of payment to contractors/sub-contractors. This section says that any person who pays money to the resident contractor (or subcontractor) for carrying out any work (including the supply of labor) is required to deduct tax on such payment.07-Jul-2022
Is service tax applicable on 194C?
Various sections relating to TDS particularly those payments which are subjected to levy of service tax like S. 194C, 194D, 194E,194G, 194H,,194I, 194J, 195 etc. Article by author No TDS on government levies like service tax , VAT, Municipal tax.
Yes, the deduction for TDS on salary is mandatory under Section 192 of the Income Tax Act. Every employer who pays a salaried income to his employees needs to deduct TDS on salary if the income amount is over the basic exemption limit.
What is 194H in TDS?
Section 194H of Income Tax Act deals with TDS levied on the earnings received as commission or brokerage. This commission is the amount paid to an entity for rendering services during a sale or purchase. Both individuals and HUFs are liable to pay this tax. It is applicable on income exceeding ₹ 15000 p.a.
Section 194J (Fee for Professionals & Technical Experts/Consultants) As per Union Budget 2020, the TDS rate for the payment of fees for technical services under Section 194J of Income Tax Act has been reduced to 2% from 10%.04-Feb-2020
Is GST applicable on 194J?
23/2017 that if GST on services has been indicated separately in the invoice, then no tax would be deducted on GST component. GST includes CGST, SGST, IGST, UTGST.Latest Updates.
Assuming that your turnover for the Financial year ending with 31st March 2020 was more than 10 Crore and purchase of goods by you from the seller is of the value or aggregate of such value exceeding 50 lakhs in the previous year, TDS provisions as mentioned in Section 194Q are applicable on you and it is to be
Is TDS applicable on audit fees?
We have made provision for audit fees in last year and not deduct any TDS on that. now in new F.Y. we received the bill and with other bills of CA it crosses the limit of 30000/- Now My query is that will Audit bill count for 30000/- TDS limit for TDS on professional charges in new F.Y. year or not.
What is threshold limit for TDS 94j?