Section 194J - TDS on fees for professional services or technical services

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ic films [ i.e. Explanation 2 of section 9(1)(vi) ] or * Royalty other than Explanation 2 of section 9(1)(vi) * non-compete fees u/s 28(va) or * any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company. Shall deduct income tax on income comprised therein. Time of Deduction - At the time of credit or payment, whichever is earlier. Rate of TDS - In normal case - 10% However, in the following cases, the rates of TDS shall be 2% instead of 10% (i) Fees for technical services (not being a professional service). (ii) Royalty where such royalty is in the nature of consideration for sale, distribution or exhibitio....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bsp; Upto 31.03.2025 Limit  From 01.04.2025 Fee for professional services  10% Rs. 30,000/- Rs. 50,000/- Fee for technical services (not being professional services) 2% Rs. 30,000/- Rs. 50,000/- Royalty in the nature of consideration for sale, distribution or exhibition or cinematographic films 2% Rs. 30,000/- Rs. 50,000/- Other Royalty 10% Rs. 30,000/- Rs. 50,000/- Non-compete fees 10% Rs. 30,000/- Rs. 50,000/- Any remuneration or fees or commission, by whatever name called, other than those on which tax is deductible u/s 192, to a director of a company 10% Nil Nil In case of a payee, engaged only in the business of operation of call centre,  2% Nil Nil Note * No ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... * Event Managers * Commentators * Anchors and * Sports Columnists. [ Notification No. 88/2008 date 21.08.2008 ] * For the purposes of TDS, therefore, all other professions would be outside the scope of section 194J. For example, this section will not apply to professions of teaching, sculpture, painting etc. unless they are notified. * Meaning of "Fees for technical Services" * The "Fee for technical Services" means any consideration (including any lump sum consideration) for the rendering of any following services  * managerial services, * technical services or * consultancy services (including the provision of services of technical or other personnel) * but does not include in "Fees for technical S....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re, provisions of section 194J are applicable on payments made by Third Party Administrator (TPA) to hospitals. [ Circular no. 08/2009 dated 24.11.2009 ] * Whether transaction charges paid by the members of the stock exchange for availing fully automated online facility, being a facility provided by the the stock exchange to all its members, constitute fees for technical services to attract the provisions of tax deduction at source under 194J. [ C.I.T. Vs. M/S Kotak Mahindra Securities Ltd. 2016 (3) TMI 1026 - SC ] * Consideration for use or right to use of computer software is royalty within the meaning of section 9(1)(vi) * T​​​​he transfer of all or any rights in respect of any right, property ....