annual maintainance contract and Section 194J

[Guest]

i would like to know whether annual maintainance contract for airconditioners attract incometax under section 194J of Income Tax Act as the work involves maintainance of technical items.

AI Summary

Annual AC Maintenance Contracts Typically Fall Under Section 194C, Not 194J, for TDS Purposes. A query was raised regarding whether an annual maintenance contract for air conditioners is subject to income tax under Section 194J of the Income Tax Act, given the technical nature of the work. The response highlighted that the Income Tax Department often applies Section 194J for TDS, even when Section 194C might be more applicable. It was clarified that routine maintenance contracts, including those for air conditioners, generally fall under Section 194C, as they involve technical services typically rendered by electricians, plumbers, etc., and should not be subject to Section 194J. The CBDT has specified that each TDS section applies exclusively to particular payments.