Deduction of tds u/s 194c or 194j

[madhavvan n]

security agency supplies security workers for guarding factory whether the payments made to security agency will fall under tds sec 194 j or 194 c according to me sec194 c covers contract of work since this is security service it would fall under Section 194J readers pls give views

[BARUN BASU]

Deploying of security guards is an execution of labour and therefore I think it should be u/s 194C.

[Ravi Chopra]

If you see the provisions of section 194J of the Income Tax Act, 1961, you would find that all the services mentioned therein are in the nature of personal skill or experties. Deploying security agency guard are nothing to do with specialized personal skill or exprerties. Therefore the same is no covered by the provisions of section 194J. Moreover, you need to see that whether your activity is falling under section 44AA of the income tax act, 1961. The answer is obviously no and therefore you need to deduct TDS under section 194C only.

AI Summary

TDS on contract payments: payments to security agencies for guards treated as contractual work attracting TDS under 194C. Payments to a security agency for supplying and deploying guards are characterised as execution of labour and supply of manpower rather than professional or technical services requiring specialised skill; therefore, TDS should be deducted under the provision for contract payments rather than that for professional/technical fees. The professional record keeping/registration requirement considered for professionals is not applicable, supporting the contract classification.