Disclaimer for deduction of income tax u/s 194J

You hereby declare, undertake and accept that:-

·         In case the income tax authority at any time finds that tax actually deductible on the amount remitted to CAPEXIL for certification has either not been paid or not paid in full. You undertake to pay the said amount of tax along with interest due.

·         You shall also be subjected to the provisions of penalty for the said default as per the provisions of the Income Tax Act.

·         You undertake to submit the requisite documents, etc., for enabling the income tax authorities to determine the nature and amount of liabilities under the Income Tax Act. as a person responsible for deduction of tax at source.

·         In the event if there is any income tax query/inquiry/ notice demanding details/ information in India in respect of above. You undertake to provide with all the necessary information/document to CAPEXIL as required by the Income Tax Department.

·         Further, you shall indemnify CAPEXIL for any tax/interest or penalty levied by the Income Tax/ Income Tax Appellate Authorities/ Courts in India for non- deduction of tax or non-compliance with the relevant provisions of Income Tax Law in this regards.

·         You are aware of section 194 J of the Income Tax Act.1961 as provided below and you agree to abide by the said section and other relevant sections as laid down by Income Tax Act, 1961 in this behalf from time to time.

Fees for professional or technical services.²⁴

194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

 (a) fees for professional services, or

 (b) fees for technical services, or

(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or

 (c) royalty, or

 (d) any sum referred to in clause (va) of section 28,

shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein :

Provided that no deduction shall be made under this section—

 (A) from any sums as aforesaid credited or paid before the 1st day of July, 1995; or

 (B) where the amount of such sum or, as the case may be, the aggregate of the amounts of such sums credited or paid or likely to be credited or paid during the financial year by the aforesaid person to the account of, or to, the payee, does not exceed—

   (i) thirty thousand rupees, in the case of fees for professional services referred to in clause (a), or

  (ii) thirty thousand rupees, in the case of fees for technical services referred to in clause (b), or

 (iii) thirty thousand rupees, in the case of royalty referred to in clause (c), or

 (iv) thirty thousand rupees, in the case of sum referred to in clause (d) :

Provided further that an individual or a Hindu undivided family, whose total sales, gross receipts or turnover from the business or profession carried on by him exceed the monetary limits specified under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum by way of fees for professional services or technical services is credited or paid, shall be liable to deduct income-tax under this section :

Provided also that no individual or a Hindu undivided family referred to in the second proviso shall be liable to deduct income-tax on the sum by way of fees for professional services in case such sum is credited or paid exclusively for personal purposes of such individual or any member of Hindu undivided family.

(2) [***]

(3) [***]

Explanation.—For the purposes of this section,—

 (a) "professional services" means services rendered by a person in the course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or advertising or such other profession as is notified by the Board for the purposes ofsection 44AA or of this section;

 (b) "fees for technical services" shall have the same meaning as in Explanation 2 to clause (vii) of sub-section (1) of section 9;

(ba) "royalty" shall have the same meaning as in Explanation 2 to clause (vi) of sub-section (1) of section 9;

 (c) where any sum referred to in sub-section (1) is credited to any account, whether called "suspense account" or by any other name, in the books of account of the person liable to pay such sum, such crediting shall be deemed to be credit of such sum to the account of the payee and the provisions of this section shall apply accordingly.

Link is also given below for your ready reference:

http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102120000000058686&searchFilter=[{%22CrawledPropertyKey%22:1,%22Value%22:%22Act%22,%22SearchOperand%22:2},{%22CrawledPropertyKey%22:0,%22Value%22:%22Income-tax%20Act,%201961%22,%22SearchOperand%22:2},{%22CrawledPropertyKey%22:29,%22Value%22:%222016%22,%22SearchOperand%22:2}]&k=&IsDlg=0