Definition - professional services - tds applicability

[pardeep bisht]

please define the professional services and contract services and tds rate applicable on the same

AI Summary

Exploring TDS Applicability: 2% for Contracts per Section 194C, 10% for Professional Services under Section 194J. A discussion on the applicability of Tax Deducted at Source (TDS) on professional and contract services was initiated, seeking definitions and applicable rates. One participant emphasized the importance of contributors providing their own analysis and references to legal provisions and case laws. Another participant clarified that for contract services, definitions can be found in the Explanation to Section 194C, with a TDS rate of 2% for contracts and 1% for subcontracts. For professional services, definitions are in Section 194J, with a TDS rate of 10% plus cess.