TaxTMI 
TaxTMI 
please define the professional services and contract services and tds rate applicable on the same
Definition - professional services - tds applicability
21 Aug 2009 
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TDS on professional services: professional fees attract higher withholding while contract and sub contract services have lower withholding.
Definitions distinguish contract services (as per Explanation to Section 194C addressing supply of labour and execution of work) and professional services (as per Explanation to Section 194J including specified categories of professional or technical service). Classification determines withholding: contract payments attract a lower withholding rate, subcontract payments a reduced rate, and professional service payments a higher withholding rate; statutory cess applies where provided. (AI Summary)
Definitions distinguish contract services (as per Explanation to Section 194C addressing supply of labour and execution of work) and professional services (as per Explanation to Section 194J including specified categories of professional or technical service). Classification determines withholding: contract payments attract a lower withholding rate, subcontract payments a reduced rate, and professional service payments a higher withholding rate; statutory cess applies where provided. (AI Summary)