SPECIAL ISSUES

   
 

  • How to comply with the provisions of Section 194- J in case of Non residents who do not have not have any agent or business connection or permanent establishment in India and pay professional fees to any Chartered Accountant, Lawyer, Advocate or a Solicitor who is resident in India.

    • The Department in this case is of the view that any fees paid through Regular Banking channels Chartered Accountant, Lawyer, Advocate or a Solicitor who is resident in India,

    by the non-residents who do not have any agent or business connection or permanent establishment in India may not be subject to the provisions of tax deduction at source under Section 194J of the Income-tax Act.

    However, foreign companies or foreign law and accountancy firms are required to send a quarterly statement, indicating the name and address of the person to whom the payments are made, to the Deputy Secretary, Foreign Tax Division, CBDT, Department of Revenue, Ministry of Finance, New Delhi.

  • Whether the services of a regular electrician on a contract basis will fall in purview of Technical services to attract the provisions of Section 194-J of the Act? In case the services of the electrician are provided by a contractor, whether the provisions of Section 194C or 194J would be applicable?

    • The payments to an electrician or to a contractor who provides the service of an electrician will be in the nature of pursuance of a contract for carrying out any work and hence provisions of Section 194C would be applicable in such cases.

  • Whether a Maintenance contract including supply of Spares fall in the ambit of 194C or 194J of the Income Tax Act?

    • In case if the maintenance contract are covered under regular maintenance contracts then they will be covered under Section 194C of the Act, but in case if there is rendering of any sort of Technical services then will consequently be liable to TDS under Section 194J of the Act.