TDS on translation services

[Ramanathan Seshan]

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
 

AI Summary

TDS on translation services: treat payments as contractual receipts under the contract withholding provision, not as technical fees.
Payments to translators should ordinarily be treated as contractual payments subject to withholding under the contract payment provision: individual per word engagements are treated as contract work with withholding at the individual rate, and payments to translation companies are treated as contract receipts with withholding at the firm/company rate. Translation is not generally a "fee for technical services" unless it involves specialist technical or professional expertise; administrative guidance and tribunal decisions support treating routine translation as contractual work.