Pandit Ji's TDS

Shri Vijay and Miss Dhami,

Does Pandit ji pay tax on his income or not? Charging Rs 3 lac for just a simple Pooja ceremony?! And we get paid only Rs 1 lac for auditing two bank branches. I guess I should have been better off wearing a Dhoti round my waist and a tilak on my forehead, reciting those arcane Sanskrit verses than practicing as a CA! Section 194J is clearly out of the question, as the list of specified professionals does not have astrologers and the like mentioned in there. But I don't know how payment to the Pandit won't be hit by Section 194C. Why isn't the Pooja "any work" as spoken about in Section 194C? Consider the following Rajasthan HC judgement:[The word `any' is a word, which excludes the limitation and qualification and can mean `all', `each' and `every'. The meaning of this word given in the statute depends upon the context and the subject matter of the statute and its generality can be restricted by the context in which it has been used. It has been used as a prefix to the word `work' which means engagement in the performance of a task, duty or the likes. The term `work' covers all forms of physical and mental exertions or both combined for the attainment of some object other than recreation or amusement. The dictionary meaning of the words `carrying on' implies a repetition of acts - Birla Cement Works v. CBDT [1997] 95 Taxman 377 (Raj.).]Pooja is done to propitiate the Gods to usher in prosperity for the business. It is a common practice amongst businessmen to hire a Pandit to identify an auspicious occasion when they should launch a new business or venture into a new line of activity. The Pandit does the pooja and the new business gets underway. And the modern-day Pandit is not an ascetic who would accept whatever little money is thrown his way as Guru Dakshina. He is a true-blue professional who's got a tariff of charges for various occasions on which he's contacted to perform the pooja. When he contracts with someone to conduct a pooja in exchange for an agreed sum of money, isn't he performing a "task, duty and the like" as discussed in the above judgement? In my view, TDS would be deductible on the payment made to the Pandit. Hari Om Jai Jagdish TDS-deduct Hare,

CA Sanjeev Bedi

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ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "vijay_as2003" wrote:>> Dear Mr Dhami, > In my view TDS is not to be deducted for the payment to Pandit ji as > this payment is not covered either in Section 194J or Section 194C. In > my view definition of work under section 194C is exhaustive and > professional services in 194J is also exhaustive.> Vijay Kumar > > > > --- In ICAI_CIRC_MEERUT_ CA@yahoogroups. com, "dj_dhami" > wrote:> >> > Dear Members,> > > > My client has paid RS.3,00,000/ - to a pundit for carrinf Pooja at > the > > office.Whether TDS is applicable for such payments.If so,under which > > section?> >>