In your case, you are providing technical service,so you are in category of professional services provider. Please note that for application of tds us 194j, there shud be some professional fees to be incurred. Sep 30, 2018 tds under the gst law is different from the above. Purview of tds section 194j fees for professional or technical services. Mar 02, 2017 tds will be holding a halfday seminar covering a range of legal topics related to professional regulation. Where tds is applicable and how to avoid it the economic times. Setup fees exempt administration fees exempt instructional materials taxable this includes books, other printed material, audiovideo tapes, etc. The institute is organizing an international seminar and exhibition at delhi.
In any case, the case before us major amount has been paid by way of reimbursement for boarding and lodging arrangements also for which no separate claims have been made. Tds is applicable to all when it exceeds the amt mention by the incometax from time to time. Whether membership fee paid to associations are taxable in india. Hi dinesh, thank you very much for the reply, i would like to inform you that i am a female and would be really thankful to you if you can help me out that how my salary slip will look alike, i m not getting my pf deducted because it was my wish, so need a help that what ever salary slip i am getting is right or not, i would like to know in details if you can help me out it would be great. Conference and seminar expenses, applicable, 18%, partially yes, yes. Do they have to withhold tds while making payment towards fee. Now question arises how tds provisions can be applied where payee is not known as tds is deducted and deposited in payees name. Tds is deducted by banks on fds and rds if the interest exceeds. No tds to be deducted from training fee indian tax updates. The seminar will be held on thursday, march 2nd at inn at the forks. Note on section 194ia tds on purchase of immovable property. Paper book b, to show that no payment was made for any of those services.
Check the payments on which tds has to be deducted form the website incometaxindia section 191 to 206 of the income tax act, 1961 deal with tds issues. If the amount is credited or paid on the last day of the financial year i. Relevant in cases where one of them maintain the books on cash basis and the other on accrual basis c. Voice of ca wishes to bring together all the members, so that we know each other better and join hands and to take tprofession to greater heights. This saves the individual the hassle of paying tax himself. Nov 27, 20 is tax to deducted on payment made for online services. Can anybody tell with reference sectionrelevant notificationquoting case laws for this issue relating to tds on seminar participation fee. Is tds is applicable for subscriptionmembership fee paid to. To publish articles, books and compilations on various topics to enlighten the members about various practical aspects and the latest amendments of law. Jan 16, 2008 tds on training fees the delhi tribunal has held that payments to institutions providing technical training to employees of assessee are not payments for providing professional services and would not attract withholding tax provisions of 194j. Nov 25, 2011 please note that for application of tds us 194j, there shud be some professional fees to be incurred. Payment made to usa for isaca exam registration fee weather tds is applicable or not.
We are going to pay participation fee to an association for open seminar conducted by them in their premises. International hotels 91 ttj del 318 10042015 by sushil lakhani. Can anybody tell with reference section relevant notification quoting case laws for this issue relating to tds on seminar participation fee we are going to pay participation fee to an association for open seminar conducted by them in their premises fee around rs 4050 already we have sponsored some programme of this association and tds has been deducted u s 194c so the limit already exceeded. Tds liability on seminar fees for employees resolved. Tax liabilities for consultants dont end at tds livemint. Tds is liable to be deducted by all class of persons except individuals and huf. However, if a professional or technical person organize conference specially for client to impart eduction and training to clients employees associates, then there can be either payment for a works contract or fees for professional or technical services depending on nature of service. Hello friends plz tell me that is there any tds laibility in case of seminar fees paid by the company for its employees to an outside organisation in case it is applicable then under which section kindly reply thanks ca shivangi garg. Itat delhi section 194j would have application only when the technology or technical knowledge, experiences skills of a person is made available to others which can be further used by him for its own purpose and not where by using technical systems, services are rendered to others. Board of india,1,security features,1,sehaj,1,self assessment tax,4,seminar on service tax. Tds applicability on provision made at the year end.
It is the responsibility of the department administering these events to charge the appropriate tax and submit these monies to revenue control. Apr 20, 2012 tds on job work us 194c material provided or without material 21 0 raj kumari friday, april 20, 2012 edit this post summary of tds provisions as applicable us 194 c of the income tax act as applicable for financial year 2014. May 17, 2011 17 may 2011 a trust gives some kind of training to the employees of its members by hiring professionals. Not filing the tds statement within one year from the specified date within which he was supposed to file the statement furnishing incorrect information in quarterly return of tds 19 index c a a bh i j i t s a w a r k a r. Section 194j tds on professional or technical fees taxadda. Similarly, output services related to the specified courses provided by iims would be exempt. But as you mentioned the contract is for annual subscription this amount to contract as well as technical services and tds is liable to be deducted at 1% or 2% depending on status of supplier. Tds on advertisement is deducted under section 194c and 194j of the income tax.
The assessing officer held that such payments were in the nature of fees for. Overhaul repairs could be carried out only in such workshops, which are. Sponsorship of debates, seminars, to earn publicity by way of banners by the. Whether tds provision is applicable on any fees paid by any company for attending any conference by its employees where conference is not restricted to company employees. Tds is required to be deducted on fees paid or payable for professional or technical services under section 194j of income tax act. Tds on foreign remittances, on payment to nonresident surprises continued ca. Taxation, conducted seminars and conferences on both direct and indirect taxation through the. In the absence of specific section, you cannot deduct the tds.
Salary, interest, commission, brokerage, professional fees. So if you received rs 30000 during the year from your client then tds of 10% will be deducted from your account194j section will apply s. What is the logic behind deducting tds on membership and. In respect of payments to which the tds provisions apply, the payer has to deduct tax at source on the payments made by him and he has to deposit the tax deducted by. Mar 22, 20 in any case, the case before us major amount has been paid by way of reimbursement for boarding and lodging arrangements also for which no separate claims have been made. Gst reverse charge list on various expenses saral gst. Tds on training fees the delhi tribunal has held that payments to institutions providing technical training to employees of assessee are not payments for providing professional services and would not attract withholding tax provisions of 194j.
The consultant will have to maintain books of accounts, such as a cash book and. Tds on membership fee of association paid to foreign country as per section 195. Therefore, according to court, the training fee cannot be termed as fee for technical services and no tds is to be deducted from the same. Tds part becomes applicable if it is taxable in india. Relevant in cases where one of them maintain the books on cash basis. Feb 22, 2016 where tds is applicable and how to avoid it. Tds as deducted under section 194j has to be deposited within one week from the end of the month in which such tds has been deducted. Here lies the contract where x pays in monetory terms and y provides services for the same. Tax gst deducted at source, shall be paid to the central government within 10 ten.
Employer deducts tds on total income, including income other than salary after taking into account all deductions and exemptions. Professional expenditure is said to be incurred if you are giving any advise on any matter and which requries application of mind. Fees for professional services, or fees for technical services, or royalty, or any sum. Article explains who is responsible for tax deduction under section 194ia, when tax has to be deducted under section 194ia, rate of tds on purchase of immovable property, threshold limit for deduction of tds under section 194ia, online payments of tds under section 194ia, form 26qb, steps to pay tax tds online and important points to be. Gst impact on noncredit courses, conferences, seminars and. Tds will be holding a halfday seminar covering a range of legal topics related to professional regulation. Rendering of services by allowing use of technical system is different. Please feel free to write to us, we want to hear it all.
Article explains who is responsible for tax deduction under section 194ia, when tax has to be deducted under section 194ia, rate of tds on purchase of immovable property, threshold limit for deduction of tds under section 194ia, online payments of tds under section 194ia, form 26qb, steps to pay tax tds online and important points to be noted related to deduction of tds. Aug 10, 2011 10 august 2011 hello friends plz tell me that is there any tds laibility in case of seminar fees paid by the company for its employees to an outside organisation in case it is applicable then under which section. The provisions of deduction of tax at source are applicable to several payments such as salary, interest, commission, brokerage, professional fees, royalty, contract payments, etc. The company x has to deduct tax for the same if it crosses the specified limit given in sec 19. Lotus valley education society it was held by allahabad high court that explanationiii to sub section 2 of section 194c clearly provides that work includes carriage of goods and passengers by any mode of transport other than by railways, so tds on school bus fees paid to transporters is governed by section 194c. Tds on membership fee of association paid to foreign. Any person not being an individual or a huf who is responsible for paying to a resident by way of fees for professional or technical services royalty and any sum referred to clause va of section 28 is liable to deduct tax at source in case aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the. Major changes has been made in the section 194c wef 01.
Keeping in view the objective of the directorate of income tax pr, pp and ol to educate taxpayers regarding various issues directly or indirectly related to them. We are organizing a conference and a company is ready to pay rs. However, in case the company has specific contract with organizer, then tds us. As applicable to individual based on his income and deductions. Section 194j faqs tds on professional or technical services fees. Salary, interest, commission, brokerage, professional fees, royalty. Annual subscriptionfees charged as lodging boarding charges by such educational institutions from its students for hostel accommodation shall therefore, not attract gst. Applicability of tds on public seminar participation fee. Tax deduction at source bombay chartered accountants. Tds, fees, interest, nondeducting tds on purchase of flat. Tds is applicable on the various incomes received such as salaries, interest received etc. Hence tds us 194c should be applicable as ther exists an contractual. Whether tds provision is applicable on any fees paid by any company for attending any conference by its employees where conference is not restricted to company employees income tax.
Tds seminar for residents welfare associations 27th july 2018. If it is only a purchase of software like tally then there is no need to deduct tds. Practical issues in tax deduction at source uploaded by 1. Tds on annual subscription license fee for software. Where tds is applicable and how to avoid it the economic. Aug 22, 2006 tds is deductible when making a payment or giving a credit to the vendor in your books of accounts. Is tds is applicable for subscriptionmembership fee paid. However, if such individualhuf is liable to get his tax audit conducted under section 44ab for the previous financial year, this exception wont be applicable and they would also be required to deduct tds under section 194j. Practical issues in tax deduction at source uploaded by. Section 194j tds on professional fees or technical services.
Tds is applicable if the value of the property exceeds rs 50 lakh. Is tax to deducted on payment made for online services. Tds applicability on attending conference, income tax. Whether service tax will be applicable on the delegate fees for indian or foreign personnel attending the seminar or assembly organised by institute. Practical issues in tax deduction at sourcepayments to residents other than salaryca. The overall limit of 1,50,000 is applicable of section 80c,80ccd2,80ccc for fy 201617 the tuition fees under section 80c has broader meaning then generally prevails in society as explained above. The provisions of tax deduction at source are applicable irrespective of the actual payment. Deductions of tax under the gst laws is required to be made wherever applicable while making payments to the suppliers vendors of goods or services or both under gst for taxable supply of goods or services or both. In simple reading of relevant sections the answer is positive and accordingly tds provisions are applicable on all provisions made in the books of accounts. Suppose there is a company x which subscribes to magazine y. Sep 27, 2016 suppose there is a company x which subscribes to magazine y.
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