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

TDS applicability for testing and inspection charges depends on whether the service is contractual or technical, changing withholding treatment. TDS applicability for testing and inspection charges depends on the legal characterisation of the engagement: if rendered as contract work, withholding follows the rules applicable to contractor payments; if rendered as specialised technical or professional services, withholding follows the regime for technical services. The written agreement and the factual scope and nature of the services determine the appropriate classification.