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

Liaisoning services taxable as technical or business support services depending on the actual nature of the work. Liaisoning services are taxable based on the actual nature of the activity: they may be classed as a technical service where specialised technical know how is applied, irrespective of formal qualifications, or as support services for business or commerce / business auxiliary service where the work is business networking, follow up, or routine facilitation; TDS labeling as fees does not settle the classification.