Which section TDS for testing & Inspection charges

[DHARMENDRA SINGH]

We deduct TDS for Testing & inspection charges under section 194C

Pls. advise which is correct or not.

[rishi mohan]

The tds applicability for testing and inspection charges shall be as per the agreement. If it is done on a contract basis then the tds shall be applicable as per section 194C and if it comes under technical services then the same shall be deductible under section 194J.

[CASeetharaman KC]

It seems from your question that inspection is of a technical nature like that conducted by agencies like SGS and Bureau Veritas and therefore 194J should be applicable

AI Summary

Clarification on TDS Deduction: Use Section 194C for Contracts, Section 194J for Technical Services Like Testing and Inspection. A discussion forum addressed the query about the correct section for deducting TDS on testing and inspection charges. The initial post suggested using section 194C. One response clarified that TDS applicability depends on the nature of the service; if performed under a contract, section 194C applies, while technical services fall under section 194J. Another response suggested that if the inspection is technical, akin to services by agencies like SGS and Bureau Veritas, section 194J would be appropriate.