1.
Yes, TDS is applicable on payments made to professionals for content writing services, as these are considered professional services under the Income Tax Act.
🖋️ Nature of Service: Content Writing
Content writing involves:
- Original creation of written material
- Use of creative and intellectual skill
- Deliverables often include website content, blogs, articles, promotional materials, etc.
This is categorized as a professional service, especially when done by individuals, freelancers, or firms with expertise in communication, journalism, or digital marketing.
✅ Applicable Section of the Income Tax Act:
🔹 Section 194J – Fees for Professional or Technical Services
TDS under Section 194J applies to:
- Services provided by professionals such as writers, editors, designers, consultants, etc.
- Includes content creators if their services are not routine or mechanical but involve specialized skill.
📌 TDS Rate under Section 194J:
Payee Type
|
TDS Rate
|
Resident Individual / Firm / Company
|
10%
|
- TDS should be deducted on the gross amount (excluding GST if shown separately).
❗ Threshold Limit:
- TDS not required if total payment to a payee during a financial year does not exceed ₹30,000.
- If cumulative payment exceeds ₹30,000, TDS applies from the first rupee.
🚫 Not under 194C:
- Section 194C applies to contracts involving routine or mechanical work.
- Content writing, being a creative, intellectual, and skilled task, is best covered under Section 194J.
✅ Summary Table:
Particulars
|
Details
|
Service
|
Content writing
|
TDS Applicable?
|
✅ Yes
|
Section
|
🔹 Section 194J – Professional/Technical services
|
TDS Rate
|
🔹 10%
|
Threshold Limit
|
₹30,000 per financial year per payee
|
TDS on GST?
|
❌ Exclude GST if shown separately in invoice
|
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