TaxTMI 
TaxTMI 
i would like to know whether annual maintainance contract for airconditioners attract incometax under section 194J of Income Tax Act as the work involves maintainance of technical items.
annual maintainance contract and Section 194J
24 Nov 2010 
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TDS classification: annual maintenance contracts for equipment treated as contract payments, not as fees for technical services.
Routine annual maintenance contracts for air conditioners, including supply of spares, are to be treated as contract payments rather than fees for technical services; CBDT guidance distinguishes routine maintenance (covered by contract payment provisions) from genuinely technical or consultancy services, and provides that any payment is subject to deduction under only one applicable TDS provision. (AI Summary)
Routine annual maintenance contracts for air conditioners, including supply of spares, are to be treated as contract payments rather than fees for technical services; CBDT guidance distinguishes routine maintenance (covered by contract payment provisions) from genuinely technical or consultancy services, and provides that any payment is subject to deduction under only one applicable TDS provision. (AI Summary)