TaxTMI 
TaxTMI 
TDS U/S 194C OR 194
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....DS U/S 194C OR 194<br> Query (Issue) Started By: - ROHIT GOEL Dated:- 15-7-2022 Last Reply Date:- 16-7-2022 Income Tax<br>Got 1 Reply<br>Income Tax<br>DEAR Experts, Under a contract, following services are provided by a a professional consultancy firm "A": A) Supply of 2 full time Consultants to a Client who shall be located at client premises at all times however be on payroll of firm....
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.... A. Client shall pay Cost to A plus 10% in exchange of such manpower supply. B) Supply of offsite consultancy to the same client. Under contract, separate consideration of both 2 works is specified. Whether it shall be permissible if client deducts TDS u/s 194C on manpower supply portion and TDS u/s 194J on offsite consultancy portion? If yes, kindly refer to any precedent/judgment in support. ....
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.... Reply By Amit Agrawal: The Reply: Dear Shri Rohit Goel Ji, First a big disclaimer: I do not deal in income tax matters at all. Hence, please treat this strictly a friendly pointer/s on broad basis, purely based on general understanding of taxation laws in India. In such type of contract, it is essential to see whether they are - in essence - one singular contract or actually, two separate cont....
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....racts which are independent of each other. One needs to see entire terms & conditions, scope of work, responsibilities & obligations etc. to arrive at any conclusion. In case of former, essential ingredients of the entire contract (i.e. principle supply, using GST analogy) will determine single applicable TDS sub-section for entire consideration. And in case of later, nature of services covered ....
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....in each of two parts of the contract determine applicable TDS sub-section for each part separately. Having two separate consideration does not necessarily proves or event points to that it is two separate contract. As a matter of act, even having two separate contracts - by itself - does not necessarily proves that it is two separate contract. If a singular contract is artificially bifurcated ....
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....into two contracts without any logical justification & reasoning so as to reduce applicable TDS rate/s, Dept. / court will see through it. And if so, essential ingredients of the entire contract (i.e.two contracts read together) will determine applicable TDS sub-section. These are strictly personal views of mine and the same should not be construed as professional advice / suggestion.<br> Discus....
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