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Technical consultany - section 44aa

Dipen (article) (434 Points)

11 March 2017

Hi,

Section 44AA specifies Technical consultancy as profession. Is there any detailed explanation in income tax rules or some case law mentioning what is technical consultancy?

Please advice

Regards

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 12 March 2017

In accordance to section 9 of the Income Tax Act, 1961 ("the Act"), Fees for Technical Services (FTS) is defined as any consideration for the rendering of any managerial, technical or consultancy services" including the provision of services of technical or other personnel.

Dictionary meaning of the same comes to:

Managerial: Services relating to a manager or to the functions, responsibilities, or position of management

Technical: Services relating to, or involving the practical, mechanical, or industrial arts or the applied sciences

Consultancy: the act of offering expert or professional advice in a field

Jigar Samani (CA) (38 Points)
Replied 25 October 2017

HR Services and Training can be called technical services?

Qiana Johnson (34 Points)
Replied 05 February 2019

Selling content for blogs can be considered a technical consultancy or a "business"?

afjal husain (ca profession) (38 Points)
Replied 05 July 2019

WILL MEDIA CONSULTANT IS A TECHNICAL CONSULTANT OR ITS COVERED IN 44AD/ADA

Vimal Goyal (14 Points)
Replied 06 January 2020

Will Insurance claim consultant be considered a technical consultant under 44 ADA considering that insurance claim requires understanding of technical and legal terms.