TDS APPLICABILITY......

This query is : Resolved

Suresh S. Tejwani (Querist)
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21 April 2026 Whether TDS on business Support Services applicable or not?
if Yes then under which section and rate?
HSN code : 00440366

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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22 April 2026 Business Support Services” by itself does not automatically fall under one fixed TDS section. If the service is technical / managerial / consultancy in nature, TDS may apply under section 194J. If it is routine contractual / back-office / manpower / operational support, it is generally more appropriate to examine section 194C. If it is in the nature of commission, then section 194H may apply. Therefore, exact section and rate can be decided only after seeing the agreement / scope of work / invoice description.

One more important point: because the date in your screenshot is April 2026, the Income Tax Department’s transition FAQ says that for transactions entered into on or after 1 April 2026, TDS returns should quote the relevant item under section 393 of the Income Tax Act, 2025, instead of old references like 194C / 194H / 194J in system reporting. The underlying nature-based distinction still matters, but the reporting reference has changed.

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