TDS on Sampling Charges

[CHITRA RAGURAM]

A party has raised service invoices for weighing and sampling charges and charged service tax @ 10.30%. I feel this is a technical service and TDS is to be deducted @ 10% u/s. Section 194J. Please advice.

AI Summary

TDS Must Be Deducted on Weighing and Sampling Charges as Technical Services per Section 194J, Circular No. 715 Confirms A query was raised regarding whether Tax Deducted at Source (TDS) should be applied to service invoices for weighing and sampling charges, which included a service tax of 10.30%. The inquirer believed these charges constituted technical services, thus requiring a 10% TDS deduction under Section 194J of the Income Tax Act. A Chartered Accountant confirmed this view, stating that despite appearing contractual, the work is technical, necessitating the TDS deduction as outlined in Circular No. 715 dated August 8, 1995.