TDS-194J-Budget changes

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Recent budget amendments to Section 194J propose reducing the TDS rate for technical services (excluding professional services) from 10% to 2% to minimise litigation. The TDS rate for other cases under Section 194J will remain at 10%. The discussion aims to clarify how to distinguish between technical and professional services, with a suggestion that services provided by engineers, architects, chartered accountants, and doctors are professional, while others may be classified as technical.

Renjith.R.s.

Renjith.R.s. (Querist)
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17 February 2020 As per recent budget, amendment under Section 194J is as follows-

"Therefore to reduce litigation, it is proposed to reduce rate for TDS in section 194J in case of fees for technical services (other than professional services) to two per cent from existing ten per cent. The TDS rate in other cases under section 194J would remain same at ten percent."

How to differentiate between technical and professional services.

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Renjith.R.S

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2020 Service rendered by professional like engineer, architect, chartered accountant, doctors etc. will be professional. Other than this may be considered as technical.

Renjith.R.s.

Renjith.R.s. (Querist)
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18 February 2020 Thanks for sharing details......

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 February 2020 Welcome..............

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