Tds on website maintenance

This query is : Resolved

NIRAV (Querist)
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17 November 2014 We have paid Rs. 32000/- for Website Maintenance to M/S. Web Studio. TDS is deducted @2% considering the same being in contact nature.

Kindly guide me whether the same is liable to be deducted @10% considering the same being rendering of professional or technical services???

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 November 2014 ideally yes, 10% TDS should be deducted on such payments...

NIRAV

NIRAV (Querist)
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18 November 2014 But if we consider the definition of Professional & Technical Services, then the services rendered by Web Studio does not fall in the Professional & Technical Services likewise " Director Remuneration " as TDS is deducted under Section 192 and not under 194j.

Kindly guide...

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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18 November 2014 why don't they fall in the definition of professional and technical services? any specific case law on that?

and further, director remuneration is covered under 192 only for executive directors....non-exec directors are covered under 194J only