27 December 2013
As per Section 194J of the Income Tax Act, TDS is to be deducted @ 10% on any amount paid to any resident as:- 1. Fees for professional services, or 2. Fees for technical services, or 3. Royalty, or 4. Any sum referred in Section 28 (Discussed below) Exceptions to TDS Deduction under Section 194J 1. No TDS should be deducted under section 194J if the amount paid or likely to be paid during the financial year does not exceed Rs. 30,000 . 2. TDS is liable to be deducted by all class of persons except Individuals and HUF . However, if such Individual/HUF is liable to get his tax audit conducted under Section 44AB for the previous financial year, this exception wont be applicable and they would also be required to deduct TDS under Section 194J. However, such individual or HUF shall not be liable to deduct TDS on the sum by way of professional or technical services in case such sum is paid exclusively for personal purposes of such individual or any member of HUF .
27 December 2013
Meaning of Professional/ Technical Service for the purpose of Section 194J 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 of Section 44AA . Other professions notified by the board for the purposes of Section 44AA are profession of authorised representative, profession of film artist and profession of company secretary Fees for Technical Services means fees for any rendering of any managerial, technical or consultancy services (including provision of services of technical or other personnel).
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