TDS on Workshop

[Vinayak S]

Our company is sponsoring few employees for attending a workshop for a day on management subject which will be conducted by external professionals (not vendor's employees).Vendor have raised a invoice with service tax. Should we deduct TDS @ 10%.

[Guest]

Yes sure. This payment will clearly fall under section 194J being payment to professionals.

AI Summary

TDS on professional fees: workshop payments to external professionals require withholding under applicable tax provisions. Payment for a single-day management workshop delivered by external professionals constitutes remuneration for professional services and triggers a withholding obligation under tax law; the company must treat the invoice as professional fees and apply the applicable TDS provisions at the prescribed withholding rate, notwithstanding service tax shown on the invoice.