tejaswinee (Student) (64 Points)
10 May 2020What will be covered under Technical Fees @ 2% TDS Rate.
Whether a Tally Software service provider will be under this Technical Fees and i have to deduct 2% or no ?
Whether I.T service provider will be covered under Technical Fees and i have to deduct 2% or no ?
I am very much not clear with this term Technical Fees can please refer something to read upon this.
CA Garima
(Assistant Manager)
(118 Points)
Replied 10 May 2020
vivek kishan ushakola
(student)
(42 Points)
Replied 10 May 2020
Hi Ms. Tejaswinee,
What is the technical services?
It means consideration for the rendering of any managerial, technical (like engineering and which involve skills) or consultancy services.
Based on the query, You can go with the invoice, if on the invoice the word technical fees is mentioned then TDS will be deducted as per section 194J.
Whereas, as per section 194C mainly emphasis on carrying out any work( like advt, broadcasting, etc) or supply of labour.
tejaswinee
(Student)
(64 Points)
Replied 10 May 2020
Mr. Vivek thankyou for your reply but, my query is considering FY 20-21 tds rates.. Where technical fees are part of 194J @ 2%.
Thankyou Garima, i am on the same page as you, can you help me out with any article elaborating technical fees...
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 15 May 2020
Under section 194J, Professional services are services provided by a person in course of carrying on legal, medical, engineering or architectural profession or the profession of accountancy or interior decoration or technical consultancy or advertising or such profession as is notified by the Board for the purpose of section 44AA.
Fees for Technical Services means fees paid for rendering any managerial, technical or consultancy services.
TDS shall be deducted at the time of:
CAclubindia
