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.

[rishi mohan]

All depends upon agreement. Hall-Marking is Service by its Nature therefore tds shall be applicable u/s 194J. If this is a Contract by establishing a relationship of contractor and Contractee, tds shall be applicable u/s 194C.

AI Summary

TDS classification for hall marking services: treated as professional/technical fees unless genuine contractor relationship, then contractual TDS applies. Hall marking charges are by nature payments for services and ordinarily attract TDS as fees for professional or technical services; however, where the engagement constitutes a contract creating a contractor-contractee relationship, the payment may be subject to withholding as contractual payments. Classification depends on the contractual terms and factual matrix of the engagement.