Section 194J

[Guest]

Whether 'technical training' received by the employees of the assessee would be covered under 'professional service' received by the assessee to be liable for TDS u/s 194J ?

[Ganeshan Kalyani]

The trainer would have raised professional service charges on the assesses for technical training provided to its employee. In this case, the assessee is liable to deduct TDS@10% under 194J from the payment to be made to the service provider. Thanks.

[KASTURI SETHI]

Sh.Ganeshan Kalyani Ji,

Sir, Thanks for enrichment of my knowledge ( a layman in Income Tax).

AI Summary

TDS on professional services: training fees billed as professional service require deduction at source under Section 194J. Where a trainer invoices technical training to an assessee as charges for professional service, those payments are treated as payments for professional service and attract the payer's obligation to deduct tax at source under the applicable TDS provision; the payer must therefore withhold tax when the service provider characterizes the training fees as professional service.