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TDS on Testing Charges

Rohit Joshi (Tax Executive) (47 Points)

08 July 2020

Hi,

Earlier we used to deduct TDS on testing charges at 10% under professional services but now there r two rates under 94J so now its confusing whether we should deduct under professional services or technical services.
Please advise

Rohit

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4 Replies

Ravi SADhiyan (Practice) (4510 Points)
Replied 08 July 2020

Originally posted by : Rohit Joshi
	Hi, Earlier we used to deduct TDS on testing charges at 10% under professional services but now there r two rates under 94J so now its confusing whether we should deduct under professional services or technical services.Please adviseRohit

Testing Service Tax Rate Applicable 2 %

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Rohit Joshi (Tax Executive) (47 Points)
Replied 08 July 2020

Any justification can we give???

Ravi SADhiyan (Practice) (4510 Points)
Replied 08 July 2020

Originally posted by : Rohit Joshi
	Any justification can we give???

Fees for technical services" means any consideration (including any lump sum consi-deration) for the rendering of any managerial, technical or consultancy services (including the provision of services of technical or other personnel) but does not include consideration for any construction, assembly, mining or like project undertaken by the recipient or consideration which would be income of the recipient chargeable under the head "Salaries";

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

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