Section 194J - Difference between Technical Consultancy (Professional Service) and Technical Services

[DEEPAK J]

Dear All,

With reference to Section 194J, following definition are given in Income Tax Act for Professional Services and Technical Services:-

1) Meaning of 'Professional Services' :- 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 or technical consultancy or interior decoration or advertising or such other profession as is notified by the CBDT for the purposes of section 44AA or of this section.

Other professions notified for the purposes of section 44AA are as follows:-

a) Profession of 'authorized representatives';

b) Profession of 'film artist'

c) Profession of 'company secretary'

2) Meaning of 'Fees for technical services':-Explanation (b) to section 194J provides that the term 'fees for technical services' shall have the same meaning as in Explanation 2 to section 9(1)(vii). The term 'fees for technical services' as defined in Explanation 2 to section 9(i)(vii) means any consideration (including any lump sum consideration) for rendering of any of the following services:-

(i) Managerial services;

(ii) Technical services;

(iii) Consultancy Services;

(iv) Provision of services of technical or other personnel.

Please share your advice/suggestion on difference between technical consultancy and technical service/consultancy services given in Section 194J of the Income Tax Act.

Also share if any definition is given for technical consultancy in Income Tax Act.

Thanks in advance.

Regards,

Deepak

AI Summary

Clarification sought on Section 194J: Differentiating 'Professional Services' from 'Fees for Technical Services' under Income Tax Act. A discussion on the forum sought clarification on Section 194J of the Income Tax Act, specifically the distinction between 'Professional Services' and 'Fees for Technical Services.' 'Professional Services' include services rendered in professions such as legal, medical, engineering, accountancy, and others notified by the CBDT. 'Fees for Technical Services' encompass managerial, consultancy, or technical services, including the provision of technical personnel, as defined in Explanation 2 to section 9(1)(vii). The inquiry requested further definition of 'technical consultancy' in the Act, with a response reiterating these definitions without additional clarification on 'technical consultancy.'