TDS Deduction

[siddharth desai]

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 deducted 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

AI Summary

Tax Deduction Dispute: 10% TDS Under Section 194J for Professional Services vs. 2% Under Section 194C for Works Contracts An individual working under an annual contract with a multinational company is facing a tax deduction issue. The company's tax department insists on a 10% TDS deduction under section 194J for professional services, whereas previous employers deducted 2% under section 194C for works contracts. The individual provides technical manpower for creative artworks and seeks expert advice. Responses indicate that the 10% deduction under section 194J is appropriate for professional services. However, one response references a case where similar work was subject to a 2% deduction under section 194C, suggesting differing interpretations.