Fee paid to Non-Professional Accountant not subject to TDS: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Kolkata bench has held that the payment of accounting charges or fee to a person who is not a qualified professional cannot be made subject to Tax deduction at Source under Section 194J of the Income Tax Act.

The Assessing Officer, while completing the assessment proceedings, disallowed Rs.60,000/- made on account of accounting charges made by the assessee by invoking the provisions u/s 40(a)(ia) of the Income Tax Act.

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The assessee submitted that the person whom the amount was paid was not a qualified professional and he was an accountant writing the accounts and hence 194J of the Act, does not apply.

While allowing the contentions, the Tribunal held that the same is not liable to TDS under section 194J of the Act.

“We agree with the submissions and deleted the disallowance made u/s 40(a)(ia) of the Act,” the Tribunal said.