TDS Query

Dear all

My office has given one contract agreement to an architecture for doing some renovation work costing around Rs 6 lakh.

So whether this should be a contract agreement or consultancy agreement as Architecture are treated as professionals. what will be TDS impact 2% or 10%.

Please help

Regards
Dibya

Accountant
Oxfam India

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10 Responses to TDS Query

  1. Amit Chhabra says:

    Hi,

    You may ask them to split this contract in 2 part, one is consultancy Contract and second is Construction contract. 10% TDS may be deducted towards the consultancy fee and 2% for the rest of the amount paid towards construction contract. In the first part of the contract he is providing consultancy as an architect that how to construct or renovate and in the second part the nature of his work is contractor.

  2. Ajaya Paik says:

    Dear Dibya,

    As you have very cleary mentioned professional, so you have to deduct 10%.

    Regards,

    Ajaya

  3. Uday Chaturvedi says:

    Dear Friends,

    No Architect implements any thing of what he or she recommends, barring exceptions.
    Essentially he / she renders professional consultancy services. We use the expression “consultancy contract”
    whch attracts 10% – TDS.

    Uday

  4. Murugan Krishnan says:

    This is Murugan from the Banyan.

    The question is whether he doing the repair work like buying material and paying labour charges or he is supervising the repair work doing by other contractor.

    If he, supervise he will comes under professional & consultancy other wise contract.

    Please wait for others opinion also.

    With regards
    Murugan.k
    Coordinator- Finance

  5. Jnanshekar says:

    Hi,
    Architect being a professional the TDS would be 10% even though you have entered into a contract.

    Shekar

  6. Ajay Jain says:

    Dear Mr. Dibya

    My view are as under:

    You have given contact for renovation work which include his professional charges also. If clearly define in the agreement cost of renovation and professional charges. Invoice submitted separately then respective TDS will be deducted. If contract is for total amount then may be treated as Contact agreement and TDS will be deducted @2%

    Regards
    Ajay Jain

  7. Alex says:

    Dear All,

    I believe, it should be treated as professional fee. Because an Architect in India is paid Professional Fees in accordance with the stipulations laid down by the Council of Architecture (CoA) India, under the Architects (Professional Conduct) Regulations Act 1989. Nevertheless, it all depends on the contract how you have made it.

    With regards
    Alex
    Sr. Manager Finance & Accounts
    CCDC

  8. CA. Varun Soni says:

    THE RATE OF TDS WOULD BE 10%.

    Thanks and Regards

    CA. Varun Soni | (Partner)
    B.R Sobti & Co. | Chartered Accountants
    Mobile: – +91-97962-21986
    Visit Us: – http://www.brsobti.co.in
    Head Office: – SDP Sabha Building Hazuri Bagh, Srinagar – 190009 (O) 2456683
    Branch Office: – B1-511 Royal Nest Apartment, Near Jodhamal Public School, Jammu – 180011 (O) 2543440
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  9. Shivdutt Sharma says:

    Dear Dibya,

    I just inform to u & give solution to u, from my side that is below mention some renovation work as rs 6lakh, so i sure that its is we will be charged under consultancy agreement b.coz any Architecture received any contract regarding any work , then he charged under professional fees b.coz he is not site contractor, he is professional like ca. so any contract sign by any professional side area work. then he will be charges TDS on this same contract or same yuself work charges-by 10% on this same below amount. but if u will pay more than 30000/- in a per year but your amount more than 30000/- so your amount above thirty thousand so your will be applicable for tds payment.

    So he will be charge under professional work an deduct 10% TDS on same ur below mention amount.

    Regard
    shiv
    hope world wide india…(NGO

  10. B V Soma Sastry says:

    It is a contract and will attract 2% TDS

    B V Soma Sastry

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