LIASONING WORK

[vishal sharma]

MY CLIENT IS RETIRED PSU EMPLOYEE, WHO HAS BEEN RETAINED BY A LIMITED COMPANY TO DO LIASONING WORK. HE IS PAID FIXED MONTHLY AMOUNT ON WHICH TDS IS DEDUCTED. TDS CERTIFICATES SHOWS THESE MONTHLY PAYMENT AS FEES.

 

I WOULD LIKE TO KNOW UNDER WHICH CATEGORY SUCH SERVICES WOULD BE TAXBLE IF -

(1) HE IS PROFESSIONALLY/TECHNICALLY QUALIFIED

 

(2) HE DOES NOT HOLD ANY PROFESSIONAL /TECHNICAL QUALIFICATION AS SUCH.

 

THANKS

 

VISHAL SHARMA

 

[Surender Gupta]

Technical qualification is not necessary for providing technical services. After rendering long services in PSU, a person may be technically sound enough to provide liaisoning services which itself is technical in nature. Non experienced persons is not supposed to engaged in such activity. Obviously if you have counter to this argument, the issue to be decided accordingly.

[Radha Arun]

The nature of the work is not clear.

If he is engaged in business networking, or follow-up in various transactions, you should look at 'support services for business or commerce' or 'business auxiliary service', depending on what exactly is done.

AI Summary

Retired employee retained for liaison work; service tax category debated: technical qualifications vs. experience. A retired public sector employee is retained by a limited company for liaisoning work, receiving a fixed monthly payment subject to TDS, categorized as fees. The query seeks to determine the applicable service tax category based on whether the individual holds professional or technical qualifications. One respondent suggests that technical qualifications are unnecessary for providing technical services, as experience may suffice. Another respondent notes the unclear nature of the work and suggests considering 'support services for business or commerce' or 'business auxiliary service' based on the specific activities performed.