TaxTMI 
TaxTMI 
WHAT IS THE CRITERIA TO DECIDE THAT WHETHER ANY SERVICE RENDERED TECHNICAL IN NATURE WILL FALL UNDER 194C OR 194J
difference b/w 194C AND 194J
14 Sep 2010 
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Distinction between contractor payments and fees for technical services: manpower/contracts versus consultancy/expertise attract different withholding rules.
Payments for execution of contract work, including supply of labour, are treated as contractor payments subject to the withholding rules for contracts; by contrast, payments for managerial, technical, consultancy or professional services-being procurement of expertise, knowledge or technical know how-are treated as fees for technical or professional services and fall under the withholding rules for such fees. Limited exceptions under Board clarifications exist. (AI Summary)
Payments for execution of contract work, including supply of labour, are treated as contractor payments subject to the withholding rules for contracts; by contrast, payments for managerial, technical, consultancy or professional services-being procurement of expertise, knowledge or technical know how-are treated as fees for technical or professional services and fall under the withholding rules for such fees. Limited exceptions under Board clarifications exist. (AI Summary)