As per Section 194J of the Income Tax Act, 1961 (IT Act) in India, there are two types of services that are subject to Tax Deducted at Source (TDS):
Professional services, as defined in the IT Act, include services rendered by:
Lawyers, solicitors, and advocates
Chartered accountants, cost accountants, and company secretaries
Architects, engineers, and surveyors
Doctors, including physicians, surgeons, and dentists
Consultants and experts in various fields
Technical services, as defined in the IT Act, include services rendered in the fields of:
Testing and analysis of materials or substances
Technical assistance and support
Engineering services, including design and development
Scientific research and development
Examples of technical services include:
- IT and software development services
- Installation and maintenance of machinery or equipment
- Technical consultancy or advisory (e.g., engineering, scientific services)
- Data processing and analysis services
- Testing and quality assurance services related to technology or machines
The key differences between professional services and technical services are:
: Professional services typically require expertise in a specific profession, such as law, medicine, or accounting. Technical services, on the other hand, require expertise in a specific technical field, such as engineering or scientific research.
: Professional services often involve advisory or consulting work, while technical services typically involve more hands-on, practical work, such as design, development, or testing.
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