Dear Experts,
I would like to know whether TDS need to be deducted under section 194J or 194C on the amount paid to language translators in the following two situations -
a. Separate contract with each individual translator specifying the rate for each word translated? b. Hire the service from a translating company which provide the said service?
Will the translation fall within the definition of fee for technical service as defined in explanation 2 to section 9(1)(vii)?
If yes, is there any case law or circular or notification to this effect?
Regards,
S Ram
Language Translation Services: TDS Applicability Under Section 194C Clarifies Contractual Work Taxation Principles A discussion forum explores Tax Deduction at Source (TDS) applicability for language translation services. The analysis concludes that translation payments generally fall under Section 194C as contractual work, with TDS rates of 1% for individuals and 2% for companies. Translation services typically do not qualify as technical services unless involving specialized domain expertise. Multiple tax tribunal rulings support classifying translation as a works contract rather than professional service. (AI Summary)
TaxTMI 
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