RATE AT WHICH TDS TO BE DECUTED

[KAILASH ASAWA]

ASSESSEE IS ENGAGED IN JEWELLERY BUSINESS. CHARGES PAID TO COMPANY OR OTHER BUSIENSS ORGAINSATION TOWARDS HALL MARKING CHARGES FOR HALL MARKING DONE TO THEIR GOLD ORNAMENTS. AT WAHT RATE TDS TO BE DECUTED.WHETHER IT COMES UNDER 194C OR IT COMES UNDER TECHNICAL FEES U/S 194J.

AI Summary

Jewelry Business Seeks Clarity on TDS Rate for Hallmarking Fees: Section 194C vs. Section 194J Explained. An individual in the jewelry business inquired about the appropriate rate for deducting TDS on payments made for hallmarking charges. The question was whether these charges fall under section 194C, related to contracts, or section 194J, concerning technical fees. The response indicated that the applicable TDS section depends on the nature of the agreement. If hallmarking is treated as a service, TDS should be deducted under section 194J. However, if it establishes a contractor-contractee relationship, section 194C would apply.