Contract work by a Professional
This query is : Resolved
13 August 2025
Hello All,
Recently we had deducted 10% on the professional charges of an Interior Designer.
What if the person is taking the contract work, will the TDS be 94C
Recently we had deducted 10% on the professional charges of an Interior Designer.
What if the person is taking the contract work, will the TDS be 94C
13 August 2025
✅ 1. If it is Professional Services
Section: 194J
TDS Rate: 10%
Definition: Includes services rendered by persons in the field of interior decoration, architecture, engineering, etc.
Interior design services fall under the professional services definition as per Explanation (a) to Section 194J.
➡️ So, if only design and consultancy is provided (e.g. layouts, 3D renders, site supervision), TDS @10% u/s 194J is correct.
✅ 2. If it is Contract Work (Turnkey basis)
Section: 194C
TDS Rate:
1% if payee is an individual or HUF
2% if payee is any other (e.g., company, firm)
Definition: Applies when supply of materials + execution of work is involved.
➡️ If the interior designer is executing the entire contract including materials, then it's considered a works contract, and TDS u/s 194C is applicable.
Section: 194J
TDS Rate: 10%
Definition: Includes services rendered by persons in the field of interior decoration, architecture, engineering, etc.
Interior design services fall under the professional services definition as per Explanation (a) to Section 194J.
➡️ So, if only design and consultancy is provided (e.g. layouts, 3D renders, site supervision), TDS @10% u/s 194J is correct.
✅ 2. If it is Contract Work (Turnkey basis)
Section: 194C
TDS Rate:
1% if payee is an individual or HUF
2% if payee is any other (e.g., company, firm)
Definition: Applies when supply of materials + execution of work is involved.
➡️ If the interior designer is executing the entire contract including materials, then it's considered a works contract, and TDS u/s 194C is applicable.
14 August 2025
Thank you , for solving the query in detailed, understanding the crux of the query....
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