Tds
This query is : Resolved
22 November 2017
WE ORDER A COMPANY TO MAKE E-MAGAZINE. AT THE TIME OF PAYMENT WHICH SECTION OF TDS WILL BE APPLICABLE WHETHER 194J OR 194C.
22 November 2017
who is giving the content?
what do you mean by "making. e magazine"
27 July 2025
When you **order a company to create an e-magazine**, the applicable **TDS section** depends on the **nature of the work**:
---
### ✅ **Section 194C (Contract)** – *Applicable if:*
* The company is doing **basic design, formatting, publishing, or printing** under your instruction.
* The work is **in the nature of a contract** (e.g., layout, uploading, typesetting, content provided by you).
* No element of professional/technical service (like original content creation by qualified professionals like authors, designers, or journalists).
**TDS Rate:**
* 1% if payment is to an individual/HUF
* 2% if payment is to a company/firm
---
### ✅ **Section 194J (Professional/Technical Service)** – *Applicable if:*
* The payment includes **fees for professional services**, like:
* Editorial work
* Content writing
* Graphic design by professionals
* Creative consultancy
* The service involves **intellectual effort or specialized knowledge**.
**TDS Rate:**
* 10% (for professional services)
---
### 🎯 **Conclusion:**
* If the company is only **executing work as per your design/content** = **Section 194C**
* If the company is **creating content, designs, editorial, etc. using professional expertise** = **Section 194J**
🔍 **Recommendation:** Review the invoice and scope of work:
* If it mentions "consultancy, creative content, editorial services" → **Apply 194J**
* If it mentions only "publication or execution of a job" → **Apply 194C**
---
---
### ✅ **Section 194C (Contract)** – *Applicable if:*
* The company is doing **basic design, formatting, publishing, or printing** under your instruction.
* The work is **in the nature of a contract** (e.g., layout, uploading, typesetting, content provided by you).
* No element of professional/technical service (like original content creation by qualified professionals like authors, designers, or journalists).
**TDS Rate:**
* 1% if payment is to an individual/HUF
* 2% if payment is to a company/firm
---
### ✅ **Section 194J (Professional/Technical Service)** – *Applicable if:*
* The payment includes **fees for professional services**, like:
* Editorial work
* Content writing
* Graphic design by professionals
* Creative consultancy
* The service involves **intellectual effort or specialized knowledge**.
**TDS Rate:**
* 10% (for professional services)
---
### 🎯 **Conclusion:**
* If the company is only **executing work as per your design/content** = **Section 194C**
* If the company is **creating content, designs, editorial, etc. using professional expertise** = **Section 194J**
🔍 **Recommendation:** Review the invoice and scope of work:
* If it mentions "consultancy, creative content, editorial services" → **Apply 194J**
* If it mentions only "publication or execution of a job" → **Apply 194C**
---
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