TaxTMI 
TaxTMI 
Dear Experts,
Can you please clarify which section and rate apply to water testing charges? Testing carried out by a private agency accredited by government.
Regards,
S Ram
Applicable TDS Section and Rate for Water Testing Charges
28 Apr 2025 
5 Replies 
29449 Views Asked by
Technical services classification: water testing by private accredited labs attracts TDS under fees for technical services and GST treatment.
Water testing by private accredited laboratories qualifies as fees for technical services when it involves expert analysis and interpretative reports, bringing payments within the TDS withholding framework with prescribed rates, threshold and PAN consequences; classification depends on substance - automated raw data may not qualify - and for GST such technical testing and analysis services attract the applicable GST rate with ITC subject to compliance and different treatment for government laboratories. (AI Summary)
Water testing by private accredited laboratories qualifies as fees for technical services when it involves expert analysis and interpretative reports, bringing payments within the TDS withholding framework with prescribed rates, threshold and PAN consequences; classification depends on substance - automated raw data may not qualify - and for GST such technical testing and analysis services attract the applicable GST rate with ITC subject to compliance and different treatment for government laboratories. (AI Summary)