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Section 194J - TDS on fees for professional services or technical services - Income Tax - Ready Reckoner - Income TaxExtract SEC 194J: TDS ON FEES FOR PROFESSIONAL SERVICES OR FEES FOR TECHNICAL SERVICES OR ROYALTY OR NON-COMPETE FEES OR DIRECTOR SITTING FEES Any person other than individual or HUF, who is responsible for paying to a resident any sum by way of- fees for professional services or fess for technical services or royalty or 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 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 exhibition of cinematographic films (iii) Person who is engaged in the business of operation of call centre. Note: No TDS where amount does not exceed 30,000 during a Financial year for each type of payment referred to in (a) to (d). No TDS is required to be deducted by an individual or HUF for professional fees paid for personal purpose, even if he is subject to tax audit. Central Board of Direct Taxes, hereby notifies the services rendered by following persons in relation to the sports activities as Professional Services for the purpose of section 194J , namely: Sports persons Umpires and Referees Coaches and Trainers Team Physicians and Physiotherapists Event Managers Commentators Anchors and Sports Columnists. The services rendered by hospitals to various patients are primarily medical services and, therefore, provisions of section 194J are applicable on payments made by Third Party Administrator (TPA) to hospitals.
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