TaxTMI 
TaxTMI 
We deduct TDS for Testing & inspection charges under section 194C
Pls. advise which is correct or not.
Which section TDS for testing & Inspection charges
29 Jan 2011 
2 Replies 
102730 Views Asked by
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. (AI Summary)
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. (AI Summary)