Income Tax deduction under 194C or 194J

[Rohit Bhatnagar]

We are goverment contractor in field of Supply Installation Testing and Commissioning of Sound System, Conference system projects in India, our major portion of contract is supply of equipments, while commissioning shall be around 10%

We wish to enquire that our TDS deducted shall be under 194C or 194J kindly clarify?

[DR.MARIAPPAN GOVINDARAJAN]

In my view under Section 194C

[YAGAY and SUN]

We endorse the view of our expert since there is no profession advice, work involved in this matter. Hence, TDS under 194C would be deducted.

AI Summary

TDS under contract applies where supply with incidental installation predominates, requiring deduction as contract payment rather than professional fees.
Payments for contracts dominated by equipment supply with incidental installation, testing and commissioning are to be treated as contract receipts; absent professional advisory services, TDS should be deducted under Section 194C as payments to a contractor rather than as professional fees under Section 194J.