SECTION 194J: TDS ON FEES FOR PROFESSIONAL AND TECHNICAL SERVICES

SECTION-194J: TDS ON PAYMENTS OF FEES FOR PROFESSIONAL AND TECHNICAL SERVICES

SECTION 194J_ TDS ON FEES FOR PROFESSIONAL AND TECHNICAL SERVICES

Section 194J say that TDS is deducted by Individual and HUF and they are covered under Tax Audit than they will deduct the TDS on payment of fees for specified professional and technical services.

SPECIFIED SERVICES

1. PROFESSIONAL SERVICES INCLUDES :

  1. Legal
  2. Medical
  3. Engineering
  4. Architectural
  5. Accountancy
  6. Technical Consultancy
  7. Interior Decoration
  8. Advertising
  9. Such other profession as notified by Board for the purpose of Section 44AA

2. TECHNICAL SERVICES INCLUDES:

  1. Any consideration for the rendering of any managerial consultancy or technical  services
  2. It includes the provision of services of technical or other personnel

3. ROYALTY

4. Remuneration/Fees/Commission paid to director of the company but not includes the salary

5. Fees paid for not carrying out any activity in relation to any business of profession

6. Fees paid for not sharing any technical know how, copy right , trade mark. Patent or any other business or commercial rights of the same nature.

RATE OF TDS :

  1. Wherein the payee is engaged in the business of the operation of call centre only w.e.f  01.06.2017: 2 %
  2. Any other case: 10 %
  3. In case PAN is not available: 20 %

THRESHOLD LIMIT OF TDS:

  1. Threshold  Limit is Rs.30000/ in all cases
  2. Except the threshold limit is not applicable in the case of Remuneration, Commission paid to Director of the company excluding the salary.

Return filing requirements –

Every Deductor deducting TDS in terms of section 194J is required to file a quarterly return in Form 26Q within following due dates –

MonthsDue Date
April to June31st July
July to September31st October
October to December31st January
January to March31st May

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