Applicability of TDS u/s 194C for a lecturer on German Language

[MAHESH MATHUR]

A) Can a payment of a Honorarium to a lecturer on Foreign Language be covered for TDS u/s  194C or 194B) Can a payment to an institution for deputing a teacher for German language can be covered by the said section Kindly refer to the following judgements: 1. Bombay Goods Transport Association V/s CBDT 210 ITR 136 (Bom)/(1994) 2. All Gujrat Federation Tax Consultants v/s CBDT (1995 (3) TMI 84 - GUJARAT High Court)= 214 ITR 276 /280 (1995) Taxmann Guj HC 3. SRF Finance Ltd. V/s CBDT (1994 (9) TMI 59 - DELHI High Court) 4. Andhra Pradesh tax Bar Association V/s CBDT (1994)118 CTR A.P. 281. section 194C is applicable only to payments made to any person for any work and not the payments made as fee for services rendered. - As per judgement in SRS Finance Ltd. V/s CBDT (1994 (9) TMI 59 - DELHI High Court)

AI Summary

Honorarium for German Lecturer Debated: Section 194J TDS Suggested Over 194C for Professional Services A discussion forum addresses whether honorarium payments to a German language lecturer are subject to Tax Deducted at Source (TDS) under section 194C or 194J of the Income Tax Act. The consensus among participants is that such payments fall under section 194J, covering professional services, rather than section 194C, which pertains to payments for work. One participant suggests deducting TDS under section 194J to avoid disputes and potential disallowance for non-compliance. The discussion references several court judgments to support the interpretation that honorarium payments are not considered fees or remuneration for professional services.