Tax at Deducted source issue

[vishveshwar rao]

Hi I am working as a independant business consultant for a company on a contract basis for their clients. While making the payment to me, they are dedcuting TDS at 10% and paying the amount. As per section 194C, TDS should be 1%. Kindly clarify and give your suggestions to avoid the TDS deduction at 10%. Regards Vishveshwar Rao

AI Summary

Consultant Questions TDS Rate; Clarification Confirms 10% TDS Under Section 194J for Professional Services An independent business consultant raised a query regarding the deduction of Tax Deducted at Source (TDS) at 10% on their payments, believing it should be 1% under Section 194C. Two respondents clarified that, as the consultant provides professional services, Section 194J of the Income Tax Act, 1961, applies, which mandates a 10% TDS rate for professional or technical services.